Understanding how to calculate taxes is essential for small business owners in Brazil. Whether you are a MEI, Simples Nacional, or Lucro Presumido entrepreneur, knowing how taxes work can help you avoid financial surprises. In this article, we will break down how to calculate taxes for each category.
1. Taxes for MEI (Microempreendedor Individual)
MEI business owners pay a fixed monthly tax (DAS), which includes:
✅ INSS (Social Security): BRL 66
✅ ICMS (State Tax on Goods and Services, if applicable): BRL 1
✅ ISS (Municipal Service Tax, if applicable): BRL 5
💰 Total: BRL 67 – 72 per month
No additional income tax is required for MEI businesses, making it a simple and affordable option.
2. Taxes for Simples Nacional
Simples Nacional businesses pay taxes based on monthly revenue, ranging from 4% to 33% depending on the business type. The tax is calculated using progressive brackets, which means higher revenue leads to a higher tax rate.
To calculate your Simples Nacional tax:
1️⃣ Find your business category (Annex I to V)
2️⃣ Determine your 12-month revenue
3️⃣ Apply the corresponding tax percentage
For example, a small retailer with monthly revenue of BRL 10,000 would pay 4% tax = BRL 400.
3. Taxes for Lucro Presumido
Businesses under Lucro Presumido estimate profit based on revenue. The tax is calculated as:
✅ IRPJ (Corporate Income Tax): 15% on presumed profit
✅ CSLL (Social Contribution Tax): 9% on presumed profit
✅ PIS and COFINS contributions
This system is better for companies with high revenue and low expenses.
4. How to Reduce Your Tax Burden
📌 Separate personal and business finances
📌 Keep financial records and invoices (Notas Fiscais)
📌 Work with an accountant to optimize tax payments
Conclusion
Calculating taxes correctly ensures your business stays compliant and financially stable. By understanding how MEI, Simples Nacional, and Lucro Presumido work, you can plan better and avoid tax surprises.
