Tips for the MEI tax return

For those who are Individual Microentrepreneurs (MEI), it is necessary to divide the sphere of the natural person and the legal person, between the life of a citizen and the responsibilities of an entrepreneur, especially due to the tax return.

This is a crucial moment of the year that requires special attention: when it comes to legal obligations you need to understand where your earnings as an entrepreneur end and where your personal earnings begin. In this sense, the MEI fits into legal entities whose annual turnover does not exceed R$81 thousand (monthly average of R$6,750). And if the CNPJ was opened in the middle of the previous year, it must be calculated in proportion to the period of activity.

“This billing value may be part of the income of the person responsible for the MEI and may result in the submission of a personal income tax (IRPF) declaration,” explains Wagner Pagliato, master professor and coordinator of Accounting Sciences at the City University of Sao Paulo (UNICID).

If the criteria are met, the declaration must be submitted. To do this, you must use the Federal Revenue page or application.

Who is required to declare the IR as MEI?

The MEI must declare income tax if:

• • The MEI company is active;
• • Having opened the MEI in 2023;
• • Have income to declare;
• • Have no revenue to declare;
• • Have income whether or not a tax bill is issued.

Furthermore, the owner of the CNPJ must also submit the IRPF declaration when he meets these criteria:

• Received taxable income totaling more than R$30,639.90 in 2023, such as income from salaried and unsalaried work, retirement benefits, pensions, rent, rural activity;

• Received income that was exempt, non-taxable or taxed exclusively at source, the amount of which exceeded R$200 thousand;

• Carrying out the sale of assets or rights on which capital gains have been determined, subject to tax, or transactions on stock exchanges, commodities, futures and the like;

• Owned or possessed assets or rights as of 12/31/2023, including bare land, the value of which was more than R$ 800 thousand;

• Gross income from rural activity exceeding R$ 153,199.50;

• Traded stocks, commodities, futures and similar exchanges;

MEIs that meet one of these characteristics must submit the IRPF declaration within the established deadline to avoid possible sanctions.

If the registrant is up to date with the Simples Nacional Collection Document (DAS), the payment guide that includes all municipal, state and federal taxes for MEIs, there will be no additional charges on the MEI declaration. This process helps the IRS be aware of your tax obligations and movements.

Wagner adds and says that it is crucial to separate personal expenses from business expenses to manage finances more efficiently. “Starting with a corporate account is a great way to take the first steps in this direction, facilitating control and transparency of MEI finances,” he advises.

Card machine

If the MEI has a card machine connected to the CNPJ, the amounts received through this device must be considered as part of the MEI’s income.

“This information is essential for accurate tax reporting,” warns Wagner.

Therefore it is necessary to include all income obtained, ensuring transparency and compliance with tax obligations.