I am a MEI, do I need to declare personal income tax?

If I am a MEI entrepreneur, do I need to declare personal income tax?

That's what we're going to discover in today's article and understand once and for all whether or not it's necessary to make this declaration.

What does it mean to be a MEI?

MEI is the acronym used to refer to Individual Microentrepreneur, a type of business regime that serves to formalize small entrepreneurs and self-employed workers.

Being an MEI offers several advantages in terms of simplifying processes and taxation.

As an MEI, the entrepreneur can earn up to an annual limit of R$$81 thousand, and cannot exceed this limit, otherwise he will be classified in another business category.

The company must be owned by just one person, it cannot have participation from other companies or even partners or owners.

This company must have at most one employee who earns the minimum wage or the ideal wage for their category.

One of the main benefits of being an MEI is the Simples Nacional, a type of simplified tax regime that reduces the tax burden for this type of business.

This contribution is more affordable compared to other schemes, making the process of maintaining a business easier.

MEI is an interesting option for those who want to undertake in a simpler way and with lower tax burdens.

Does the MEI need to declare corporate income tax?

Before knowing whether it is necessary to declare income tax As an individual, it is also important to know whether the Individual Microentrepreneur needs to declare income tax as a Legal Entity and how he/she fits into this position.

The Individual Microentrepreneur (MEI) has simplified taxation that involves the payment of a fixed monthly amount called DAS, Documento de Arrecadação do Simples Nacional.

This amount covers several taxes, such as INSS, ICMS and ISS, depending on the MEI's activity. DAS is a tax that is levied on the gross revenue obtained by the MEI.

In addition to the DAS, microentrepreneurs must pay another tax called DASN-SIMEI, the Annual Income Declaration.

However, MEIs do not pay corporate income tax (IRPJ) on profits from their activity as legal entities (PJ). Instead, MEI taxes are calculated based on gross revenue, and MEIs do not need to file a Corporate Income Tax Return.

Therefore, there is no obligation to pay Income Tax, even if the MEI has a business, it has some different fiscal and tax obligations.

The amount of Corporate Income Tax that would be levied on MEI is a fixed rate of R$60.60 which is divided between the INSS and the Tax on Services.

I am a MEI, do I need to declare personal income tax?

As a MEI entrepreneur, even if there is no obligation to pay Corporate Income Tax, it is possible that it is necessary to declare Personal Income Tax.

However, this only happens in some very specific situations, so as an individual microentrepreneur you need to understand in what type of situation this could happen.

So the answer to the question "I am a MEI, do I need to declare personal income tax?" is yes, but in specific situations.

To declare Personal Income Tax, known as IRPF, you need to start by calculating your gross revenue for the year and subtracting the deductible expenses, to finally find out what the profit shown is.

Deductible expenses refer to what is necessary for a business to operate, such as rent, raw materials, electricity, water, internet and much more.

And the first situation that makes the MEI obliged to pay Personal Income Tax is the receipt of taxable income that exceeds R$$28,559.70 in one year.

For any amount below this, there is no need to file an IRPF declaration. However, if you meet any of the other criteria that will be mentioned, you will need to file a declaration.

If your MEI is related to rural activities, the gross revenue value cannot exceed R$142,798.50.

In addition to these specific situations, one of them involves the sum of non-taxable exempt income or income taxed exclusively at source that has exceeded the amount of R$$ 40 thousand throughout the fiscal year.

These incomes include amounts received, such as workers' compensation, unemployment insurance, and social security benefits that are not subject to additional taxation.

Furthermore, it is important to observe the criterion related to possession or ownership of assets or rights up to December 31 of the previous year.

If someone owned, at the end of the current year, assets or rights with a total value greater than R$300,000, including, for example, real estate or financial investments, that person is required to declare IRPF.

These criteria are relevant because, upon exceeding them, taxpayers must report to the tax authorities, declaring their financial information in accordance with current tax legislation.

If you are carrying out operations on the stock exchange or have received income from foreign sources, this is also a reason that makes it necessary to declare IRPF.

If you sold a property or had capital gains on investments subject to taxation, this may also require you to declare your IRPF, regardless of your MEI status.

Therefore, the obligation to declare IRPF as an MEI is not directly related to your business status, but rather to your personal income and activities.

It is recommended that you consult an accountant or use the program provided by the Federal Revenue Service to determine whether or not you should file your IRPF return based on your specific situation, taking into account the criteria established by current legislation.

It is crucial that you do not miss the dates and deadlines established for filing your income tax, as this could lead to many problems in the future. Problems that could even impact the operability of your business.