Approval of the new MEI revenue ceiling guarantees a limit of R$130 thousand for businesses

The year 2024 could mark an important change for Individual Microentrepreneurs (MEI), with the possible approval of the new annual revenue ceiling. The value could rise to R$130 thousandrepresenting a considerable increase compared to the current limit of R$81 thousand.

One of the main advantages of formalizing as a MEI is access to social security benefits, including retirement. Our expert Laura Alvarenga listed all the advantages of the Individual Microentrepreneur, Click here.

Despite the benefits, the annual revenue limit has always been a delicate issue for MEIs, as exceeding it could result in tax and administrative consequences.

New MEI 2024 billing limit

O PLP 108/21, which is in an advanced stage of analysis, also foresees other important changes for MEIs. In addition to increasing the revenue ceiling, the project proposes that MEIs can hire up to two employeescompared to the only currently allowed collaborator.

This could mean a opportunity for growth and expansion for businessincreasing its production capacity and enabling the creation of more jobs.

Furthermore, the project establishes new revenue ceilings for Microenterprises (ME) It is Small Businesseswith limits of R$ 868.4 thousand and R$ 8.6 million, respectively. These changes aim to simplify the regulatory environment and reduce business owners’ concerns regarding revenue limits.

However, it is important to highlight that approval of the project is still pending vote in the Chamber of Deputies and presidential sanction. MEIs must pay attention to updates on the project’s progress and be prepared to adapt to the new rules, if they are approved.

What happens if I exceed the annual billing limit?

If the annual revenue limit is exceeded, the MEI may face some consequences. One of them is the category mismatchwhich means that it is no longer considered a MEI and is now taxed in accordance with the rules applicable to micro-enterprises or small businesses.

Furthermore, the MEI is obliged to collect taxes on the excess value, which can increase your tax burden. In general, the tax to be paid is calculated based on the difference between actual revenue and the limit established for the fiscal year.

See everything you need to know before formalizing as a MEI, clicking here.