Simples Nacional in 2026: How It Works, Limits, and Annexes

The Simples Nacional is a regime that combines several taxes into a single monthly payment slip, the DAS (Documento de Arrecadação do Simples Nacional), for microempresas and empresas de pequeno porte (microenterprises and small businesses) with gross revenue of up to R$ 4,800,000.00 per year. The rate depends on your activity's annex and on your revenue for the last 12 months.

What the law says

The regime is set out in Complementary Law 123/2006. Under Receita Federal rules, a microempresa (ME, microenterprise) has gross revenue of up to R$ 360,000.00 per year, and an empresa de pequeno porte (EPP, small business) has from R$ 360,000.01 up to R$ 4,800,000.00. States may also apply sublimits for ICMS and ISS: R$ 3,600,000.00 as a rule, or R$ 1,800,000.00 in states that adopt that option. The general limit remains R$ 4,800,000.00.

Who can opt in

As a rule, empresários individuais (individual entrepreneurs), sociedades empresárias (business companies), and sociedades simples (simple partnerships). Companies that cannot opt in include:

• corporations (sociedades por ações) and cooperatives (except consumer cooperatives);
• companies that hold shares in another legal entity;
• banks, insurers, and other financial institutions;
• companies with debts to the federal government, states, or municipalities whose collection has not been suspended.

A single prohibited activity, even a secondary one, is enough to block the election. The election is made online, on the Portal do Simples Nacional, and is irrevocable during the calendar year.

The annexes

Each activity is taxed under an annex:

• Annex I: commerce, the resale of goods.
• Annex II: industry, the sale of products manufactured by the company itself.
• Annex III: various services, such as schools, travel agencies, and accounting firms, as well as services that depend on the "r" factor.
• Annex IV: construction, landscaping, security, cleaning, and legal services.
• Annex V: services subject to the "r" factor when it is below 0.28, such as medicine, engineering, and advertising.

The "r" factor is the payroll for the last 12 months (with charges) divided by the gross revenue for the last 12 months. If it is 0.28 or more, the activity is taxed under Annex III; below that, under Annex V.

How the tax is calculated

The effective rate is calculated as follows: (revenue for the last 12 months x nominal rate of the bracket - deduction amount) / revenue for the last 12 months. The tax for the month is the effective rate multiplied by that month's revenue.

Example using the bracket the Receita cites for Annex II, from R$ 720,000.01 to R$ 1,800,000.00, with a nominal rate of 11.20% and a deduction amount of R$ 22,500.00. Revenue for 12 months of R$ 1,000,000.00: (R$ 1,000,000.00 x 11.20% - R$ 22,500.00) / R$ 1,000,000.00 = 8.95%. If the month's revenue is R$ 80,000.00, the DAS will be R$ 7,160.00. This is an illustrative example; check the table for your annex on the Portal do Simples Nacional.

Deadlines and fines

• The DAS is due on the 20th of the month following the revenue; if there is no banking day, it moves to the next business day.
• The monthly declaration (PGDAS-D) must be filed by the DAS due date.
• Late filing of the declaration triggers a fine of 2% per month, capped at 20%, with a minimum of R$ 50.00.

The Receita informs that part of these rules will be updated with the tax reform. Always confirm the version currently in force.

Frequently asked questions

Is the MEI in the Simples Nacional?

Yes, the MEI (Microempreendedor Individual, Individual Microentrepreneur) uses the Simples Nacional with fixed monthly amounts, through the SIMEI. The ME and the EPP calculate the tax on revenue.

Can I change regimes in the middle of the year?

As a rule, no. The election is irrevocable during the calendar year.

Does the Simples Nacional require a cash book?

Yes, the ME and the EPP keep a livro-caixa (cash book), and the lack of one can lead to ex officio exclusion from the regime.

Read also

• Microempresa (ME): what it is and how to open one
• From MEI to microempresa: when and how to migrate
• Accountant: when to hire one and how much it costs for MEI and ME