President Lula signs law in support of Brazilian micro-entrepreneurs

Brasilia, Oct 22 (Prensa Latina) Brazilian President Luiz Inacio Lula da Silva has signed a law that forgives tax debts for small-scale entrepreneurs and progressively raises the annual revenue threshold for eligibility under the individual micro-entrepreneur (MEI) regime. The legislation, approved last week by the National Congress, is part of the "Prospera MEI" program—an initiative designed to facilitate financial regularization, expand growth opportunities, and improve access to resources for self-employed workers.

October 22, 2026
15:29

To retain this benefit, entrepreneurs must keep their monthly contributions up to date for the six months following the law’s entry into force. Furthermore, those with ongoing legal proceedings related to these debts must withdraw their respective lawsuits.

Under this law, small businesses will be able to increase their revenue without being automatically excluded from this simplified tax regime.

Another amendment allows for the hiring of up to two employees, an increase from the previous limit of one.

Brazil has approximately 17 million individual micro-entrepreneurs, according to data presented by the federal government during the discussion of these measures.

The initiative aims to address the financial difficulties faced by a segment of this sector—specifically those who have accumulated tax liabilities and encounter obstacles in accessing credit or expanding their business activities.

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