- Federal debt forgiveness: Tax liabilities with the federal government, including social security contributions, fines, and interest, will be written off.
- Graduated new cap: Maximum annual revenue rises to R$ 110,000 in 2027 and reaches R$ 140,000 in 2028.
- Invoicing: A presidential decree exempts MEIs and nano-entrepreneurs from issuing invoices on retail sales or services provided to individual consumers.
The federal government's signing of the new legislation directly alters the expense outlook for millions of individual micro-entrepreneurs. The package aims to clear blocked business registrations and prevent the forced expulsion of growing businesses from the simplified tax regime.
What Happened to the MEI Rules?
President Luiz Inácio Lula da Silva signed Complementary Law 238/2026—officially named the Prospera MEI package—which grants forgiveness on accumulated federal tax liabilities and establishes a schedule for substantially raising the annual gross revenue limit for micro-entrepreneurs.
The measure addresses one of the biggest hurdles faced by the category: the accumulation of tax penalties that led to canceled business registrations (CNPJs) and blocked access to formal bank credit. In addition to the amnesty on federal debts, the text enables the renegotiation of bank debts with discounts through rounds of auctions with financial institutions.
Alongside the complementary legislation, a presidential decree was signed removing the requirement to issue invoices for transactions directed at individual retail consumers, simplifying the daily routine for both micro-entrepreneurs and nano-entrepreneurs covered by the regulation.
How Do Debt Forgiveness and Bank Renegotiation Work?
The tax forgiveness applies to liabilities owed to the federal government, covering unpaid social security contributions, late-payment fines, and interest accumulated during the periods covered by the law. The focus is to wipe out liabilities that prevented businesses from maintaining tax compliance.
It is crucial to understand the separation of liabilities: federal taxes are forgiven according to the rules of LC 238/2026, while debts contracted with financial institutions enter a credit discount auction model. Under this mechanism, banks will offer balance reductions to allow self-employed workers to clear their names and resume their banking relationships.
Pay attention to the scope of the amnesty: The forgiveness provided in the law applies to federal taxes administered by the central government. Entrepreneurs should monitor regulatory ordinances to confirm whether all their old payment forms have been written off automatically or if they require validation on the Simples Nacional portal.
When Do the New Rules Take Effect?
The schedule is divided into stages: some operational simplifications take effect immediately, while the adjustments to revenue limits and staff expansion become effective starting with the 2027 calendar year.
This timing gap requires immediate caution for those generating revenue close to the previous limit: surpassing the cap during the current year still triggers audits and expulsion under the old rules. Financial planning must respect the formal schedule established by the legislation.
What Changes Compared to the Old Model?
The basic structure of the regime has been expanded across all major axes: revenue caps, authorized headcount, routine bureaucracy reduction, and easier access to corporate and public contracts.
Expanding hiring capacity from one to up to two workers fulfills a long-standing demand from neighborhood retail businesses and service providers, who previously had to prematurely migrate to a micro-enterprise (ME) structure simply to formalize a second assistant.
| Rule | Previous Model | Under LC 238/2026 |
|---|---|---|
| Maximum Revenue | R$ 81,000 per year | R$ 110,000 (2027) / R$ 140,000 (2028) |
| Employee Limit | Only 1 employee | Up to 2 employees (eligible activities) |
| Retail Invoicing | Required under local interpretations | Express exemption by decree |
| Federal Tax Liabilities | Registration in active debt and shutdown | Forgiveness of debts, fines, and interest |
| Public Procurement | Restricted and bureaucratic access | Simplified rules for participation |
What Precautions Are Needed Before Accelerating Spending?
Expanding the revenue cap does not guarantee an increased net margin, and entrepreneurs must carefully manage the timing of these changes to avoid accounting surprises.
- Registration regularization: The amnesty clears federal tax liabilities and unlocks the certificates of good standing needed to secure new contracts.
- Room to grow: The R$ 140,000 threshold in 2028 provides breathing room to absorb price inflation without outgrowing the simplified tax regime.
- Risk of outgrowing too early: Generating revenue above the historical limit in 2026 will continue to result in retroactive Simples Nacional assessments.
- Cost of a second employee: Labor payroll taxes still apply and require rigorous monthly cash flow planning.
If you have overdue DAS installment payments or accumulated federal debts, the new legislation brings immediate relief to your liabilities. For expanding your revenue and hiring an extra employee, maintain your current rigorous controls until the end of the 2026 fiscal year, as the new R$ 110,000 cap will only protect your business starting in 2027.
The Verdict: Significant Progress, but with Phased Implementation
Complementary Law 238/2026 resolves a critical bottleneck by amnesty-granting federal taxes and setting a cap of R$ 140,000 by 2028. However, micro-entrepreneurs should treat 2026 as a transition year: take advantage of the amnesty to clear federal liabilities and renegotiate bank lines, without making the mistake of exceeding fiscal limits before the official rollout in 2027.