Will MEI be automatically canceled? New law approved by the Chamber of Deputies impacts thousands of Brazilians

New law brings more security to MEI and can relieve thousands of entrepreneurs

O Microentrepreneur Individual (MEI), which is already an essential figure for millions of Brazilians seeking to formalize their small businesses, may face important changes with a new law approved by the Chamber of Deputies. This new law promises to automatically cancel the MEI after 24 months of fiscal inactivity, but brings with it a series of advantages and greater security for entrepreneurs.

How does MEI closure work today?

Currently, If you are a MEI and have not paid your taxes or submitted mandatory declarations for 12 consecutive months, your registration will be terminated automatically. That's right, without prior notice. However, in 2021, a resolution changed this period to 24 months and began to require that the entrepreneur be notified before cancellation. These notifications are sent via messages, emails and even through the Electronic Tax Domicile (DTE) of the Federal Revenue Service, giving the MEI a chance to regularize their situation before the worst happens.

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What changes with the new law

The big news is that the new law approved makes this 24-month rule definitive and, more importantly, inserts this rule into the law, ensuring that it does not change from one hour to the next. That is, now the MEI is assured that the rules will not be changed without notice. The idea is to avoid unpleasant surprises for those who are already facing the challenge of doing business in Brazil.

With this new law, if the MEI remains inactive for 24 consecutive months, the cancellation will be automatic, but always with that advance notification, as has already been happening. This gives the entrepreneur plenty of time to regularize their situation before the cancellation is effective. This measure aims to provide greater peace of mind and predictability, especially in a scenario where tax rules can seem complex and even confusing for those who are focused on growing their business.

Why this change is important

Imagine thatand you are a MEI who had to stop working for a while. With the previous rules, It could happen that your registration is canceled without you even knowing, simply for failing to pay taxes or submit annual returns. This ended up causing a huge headache when you decided to return to the market, with accumulated debts and great difficulty in regularizing the situation.

Now With the new law, entrepreneurs will have greater clarity about what they need to do and what can happen if they fail to comply with their tax obligations. This is a real relief, especially for those who already feel overwhelmed by the day-to-day bureaucracy.

What if you don't close MEI correctly?

If you, as MEI, if you do not close your activity correctly, the consequences can be very complicated. Even if you are not active, you are still responsible for paying taxes and submitting annual returns. If you don't do this, you will end up accumulating debt and running the risk of becoming a debtor, which can result in fines and even prevent you from obtaining credit in the future.

If you do not resolve these issues, You may have difficulty obtaining negative debt certificates, which are essential for a number of activities, such as participating in bids or applying for loans. In other words, it is a problem that can close many doors for you.

More security for MEI

EssThe new law approved is an important step towards offering more security and peace of mind to microentrepreneurs. With the clear legal provision on the automatic cancellation of the MEI After 24 months of tax inactivity, and with the guarantee of prior notification, entrepreneurs now have a more stable and predictable scenario to keep their businesses up to date.

Therefore, If you are a MEI, pay attention to your tax obligations and take advantage of the extra time and notifications to regularize your situation, avoiding unpleasant surprises.. new law came to bring more clarity and alleviate the concerns of those who are trying to grow their business in Brazil.

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Will MEI be automatically canceled? New law approved by the Chamber of Deputies impacts thousands of Brazilians