Which tax regime does a Brazilian company use: MEI, Simples Nacional, Lucro Presumido or Lucro Real?
It depends on revenue, activity and legal form. MEI up to R$81,000 a year, Simples Nacional up to R$4.8 million, Lucro Presumido up to R$78 million of revenue in the previous year, and Lucro Real for anyone above that or by choice.
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Detailed Explanation
## Four regimes
Every Brazilian business is taxed under one regime for the calendar year, and almost every figure depends on it.
- MEI
an individual entrepreneur with revenue up to R$81,000 a year and at most one employee. A fixed monthly DAS-MEI, R$82.05 to R$87.05 in 2026. - **Simples Nacional**: revenue up to R$4.8 million a year. One monthly DAS covering federal, state and municipal taxes, at a rate from the LC 123/2006 annex tables. A sociedade an么nima cannot opt in. - **Lucro Presumido**: revenue in the previous year up to R$78 million. Profit is presumed as a percentage of revenue (8% for commerce and industry, 32% for services, for IRPJ). - **Lucro Real**: tax on the actual adjusted profit. Mandatory above R$78 million of revenue in the previous year.
## What changes
Under the Simples Nacional and Lucro Presumido expenses do not reduce income tax, because tax follows revenue. Under Lucro Real they do, when they are necessary, usual and normal for the business.
## How Finn helps
Finn asks for your regime before it quotes any figure, tracks that regime's dates and shows the figures. The choice itself is made with your contador.
Source: https://www.gov.br/receitafederal/pt-br/assuntos/orientacao-tributaria/declaracoes-e-demonstrativos/ecf/perguntas-e-respostas-pessoa-juridica-2021-arquivos/capitulo-xiii-irpj-lucro-presumido-2021.pdf
Real-World Examples
Freelance designer
Revenue of R$60,000 a year and no employees: the MEI is possible, at R$86.05 a month for services in 2026.
Growing software company
Revenue of R$2 million: the Simples Nacional is possible, and the fator R decides between Annex III and Annex V.
Holding structured as an S.A.
An S.A. cannot use the Simples Nacional, so it chooses between Lucro Presumido and Lucro Real.
Common Mistakes to Avoid
- Assuming the Simples Nacional is always cheaper
- Forgetting that an S.A. cannot opt into the Simples
- Expecting expenses to reduce tax under Lucro Presumido
Frequently Asked Questions
Can I change regime during the year?
The regime is chosen for the calendar year. Ask your contador before the year starts.
Does AccountsOS choose for me?
No. Finn shows the figures; the choice is yours and your contador's.
Practical Tips
- Review the regime with your contador before each January
- Keep revenue by activity, because several regimes need it
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