Politics · Brazil · 1 hr ago
Brazil approves MEI debt relief and higher income limits
Brazilian President Luiz Inácio Lula da Silva signed a law to ease costs for individual microentrepreneurs, known as MEIs.
It forgives eligible social security contributions collected through the DAS payment system, including interest, fines and fees, for debts established by October 13, 2026.
The debt relief is expected to start in January 2027, and MEIs must keep paying their regular DAS contributions to retain the benefit.
The process is expected to be automatic, but the government’s debt collection office still needs to set out the rules.
Annual income limits will rise to R$110,000 in 2027 and R$140,000 in 2028, and MEIs will be allowed to hire up to two employees.
More than three million MEIs have debts in active collection, totaling over R$12 billion; the relief could reach more than six million if it also covers debts not yet registered there.
The changes aim to give small businesses more financial breathing room as Brazil faces high interest rates and slower growth, but their effects depend on how the rules are implemented.
President Luiz Inácio Lula da Silva sanctioned a law providing debt relief for individual microentrepreneurs, known as MEIs, and raising their annual revenue limits.
The law provides for forgiveness of certain MEI social security contribution debts, including interest, fines and charges, for debts established by October 13, 2026.
The revenue ceiling will rise to R$110,000 in 2027 and R$140,000 in 2028.
The rules are scheduled to take effect on January 1, 2027, and MEIs will need to keep paying their DAS contributions to retain the benefit.
CNN Brasil reported that more than 3 million MEIs have debts registered in active debt, while the procedure for granting relief still requires regulation.
- Who
- President Luiz Inácio Lula da Silva sanctioned the law; it affects individual microentrepreneurs (MEIs).
- What
- The law provides for debt relief, higher annual revenue limits and permission to hire up to two employees.
- When
- Lula sanctioned it on October 21, 2026. The new rules are scheduled to take effect on January 1, 2027.
- Where
- Brazil.
- Why
- The measure is intended to ease financial pressure on small businesses amid high interest rates and economic slowdown.
This story does not have two clearly opposing sides.
Lula sanctioned the law, according to the articles.
The new rules are scheduled to take effect, and debt relief is expected to begin.
The annual MEI revenue ceiling is scheduled to rise to R$110,000.
The annual MEI revenue ceiling is scheduled to rise to R$140,000.
- Debt relief cutoff
- Debts established through October 13, 2026
- Debt relief start
- January 2027
- Revenue ceiling, 2027
- R$110,000
- Revenue ceiling, 2028
- R$140,000
- Employees allowed
- Up to two, including in rural activities
- Debts in active debt
- More than 3 million MEIs; average estimated at R$3,500 per taxpayer