Income Tax for Legal Entities (MEI), Microenterprises and Small Businesses: everything you need to know
Posted: Sat Feb 01, 2025 9:23 am
What is Corporate Income Tax (IRPJ)?
Corporate Income Tax (IRPJ) is a federal tax applied to companies, to be accounted for according to the tax nature of each Institution.
As with Individuals, the preparation of the form has a deadline and must be transmitted via the internet, through the official system for this purpose, of the Brazilian Federal Revenue Service.
In the context of this article, it is important to remember that: hiring an accountant or accounting firm is required for small businesses, and is optional for MEI and Microenterprises.
Taxation models in Brazil
When setting up your business, Brazilian laws australia telegram screening allow you to determine the tax regime. The regime chosen determines the mandatory declaration and the value of the IRPJ tax rate. Check out the tax regimes:
Simple National
Tax regime that includes Individual Microentrepreneurs (MEIs) and Microentrepreneurs (MEs) – combines several taxes in a single payment.
Micro-enterprises that earn up to R$360,000 per year, MEIs that earn up to R$81,000 per year and Small Businesses that earn up to R$4.8 million per year are included in Simples Nacional.
Real Profit
Tax regime widely used in Brazil and which covers most medium and large companies.
Presumed Profit
This regime is also intended for larger companies. It is a kind of alternative to Real Profit, however, it is not permitted for all companies.
Arbitrage Profit
This is the least used model of all and is generally determined by the IRS itself. It is usually used when there is suspicion of fraud or lack of information in medium and large companies.
Which companies must file an income tax return?
Not all companies with an active CNPJ need to file an IRPJ declaration, as is the case for companies registered under Simples Nacional (MEI, ME and EPP).
Micro and small businesses, for example, already collect this tax throughout the year by paying monthly tax bills; similarly, MEI companies do not need to file a declaration, since this tax is already included in the monthly collection bill (known as the MEI booklet).
Corporate Income Tax (IRPJ) is a federal tax applied to companies, to be accounted for according to the tax nature of each Institution.
As with Individuals, the preparation of the form has a deadline and must be transmitted via the internet, through the official system for this purpose, of the Brazilian Federal Revenue Service.
In the context of this article, it is important to remember that: hiring an accountant or accounting firm is required for small businesses, and is optional for MEI and Microenterprises.
Taxation models in Brazil
When setting up your business, Brazilian laws australia telegram screening allow you to determine the tax regime. The regime chosen determines the mandatory declaration and the value of the IRPJ tax rate. Check out the tax regimes:
Simple National
Tax regime that includes Individual Microentrepreneurs (MEIs) and Microentrepreneurs (MEs) – combines several taxes in a single payment.
Micro-enterprises that earn up to R$360,000 per year, MEIs that earn up to R$81,000 per year and Small Businesses that earn up to R$4.8 million per year are included in Simples Nacional.
Real Profit
Tax regime widely used in Brazil and which covers most medium and large companies.
Presumed Profit
This regime is also intended for larger companies. It is a kind of alternative to Real Profit, however, it is not permitted for all companies.
Arbitrage Profit
This is the least used model of all and is generally determined by the IRS itself. It is usually used when there is suspicion of fraud or lack of information in medium and large companies.
Which companies must file an income tax return?
Not all companies with an active CNPJ need to file an IRPJ declaration, as is the case for companies registered under Simples Nacional (MEI, ME and EPP).
Micro and small businesses, for example, already collect this tax throughout the year by paying monthly tax bills; similarly, MEI companies do not need to file a declaration, since this tax is already included in the monthly collection bill (known as the MEI booklet).