App Drivers Can Now Obtain Individual Micro-Entrepreneur (MEI) Benefits

RIO DE JANEIRO, BRAZIL – Independent app drivers, a profession on the rise in recent years, have been supported by the government, through a resolution published in the Federal Gazette last Thursday, August 8th, permitting them to be classified as individual micro-entrepreneurs (MEIs).

The MEI program was established ten years ago to encourage the creation of small businesses and self-employed workers such as vendors, confectioners, manicurists, hairdressers, electricians, among others, at a low cost.

These professionals may join the program if their business invoices no more than R$81,000 per year (R$6,700 per month) and employs no more than one worker.

Currently, the monthly tax cost for those registered as MEIs is R$49.90, which can be increased by R$1 if the line of business is trade or industry (ICMS), or R$5, in tax on services of any nature (ISS), if the line of business is services — totaling R$54.90. Should the business involve these three activities (trade, industry, and services), the monthly amount is R$55.90.

In addition to a monthly contribution, the micro-entrepreneur is also required to submit an annual corporate tax return (DASN SIMEI), to keep monthly billing records, issue invoices to companies, keep purchase and sale invoices and perform mandatory collections (if there is an employee).

MEI registration enables micro-entrepreneurs to register with the National Corporate Taxpayer Registry (CNPJ), to issue invoices, to rent card machines and to access loans (at lower interest rates). Besides, they may also sell their products or services to the government and access the technical support of the Brazilian Micro and Small Business Support Service (SEBRAE).

Over the past five years, since the pre-recession period, the number of MEIs in the country has grown by more than 120 percent.

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