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Forgiveness of debts and new MEI ceiling: understand what changes

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Based on a feed excerpt; full article content has not been acquired. Source evidence retrieved 21/10/2026, 22:24:24 UTC.

Briefings

Brazilian President Lula signed Law 238/2026, effective January 1, 2027, granting tax debt forgiveness to microentrepreneurs (MEI) and extending the annual revenue cap from R$81k to R$110k in 2027 and R$140k in 2028. The package also allows hiring up to two employees, waives VAT invoices for sales to natural persons, and includes a R$5k Pix investment aid for small businesses. Approximately 3.6 million MEI are expected to benefit from the debt relief, while 1.6 million face bank debt renegotiation through auctions. Key dates include the law's promulgation on October 21, 2026, and the implementation of the new revenue limit starting January 1, 2027.

Key points

• Law 238/2026 grants tax debt forgiveness to microentrepreneurs whose debts were incurred by October 13, 2026, covering federal taxes, social security contributions, and associated penalties.
• The annual revenue cap for MEI increases from R$81k in 2026 to R$110k in 2027 and R$140k in 2028, allowing growth without immediate regime change.

Context

This legislation represents a significant shift in Brazil's microentrepreneur support framework, combining debt relief with expanded operational freedoms. The measures aim to stimulate economic activity by removing financial barriers and simplifying compliance for small business owners.

Limitations

Coverage is limited to federal tax debt forgiveness and revenue cap changes; bank debt renegotiation details remain unverified. Implementation timeline for the R$5k Pix aid is uncertain as resources depend on operational setup. Some data points like exact auction participation numbers are estimates rather than confirmed figures.

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