Rachid criticizes project that raises limits of Simples

The change in the collection of Simples Nacional "will not be good for public accounts", said yesterday the secretary of Federal Revenue, Jorge Rachid, when referring to the project that raises the limits of the program. The House Bill (PLC) 125/2015 was approved last year by the Senate Economic Affairs Committee (CAE) and now goes to the floor. "If [PLC 125/2015] is voted on in this way, if the new level is granted, this will not be good for public accounts," he said during a meeting in São Paulo, promoted to discuss raising the ceiling of Simples.

Source: Valor Econômico (16/02)

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ETCO holds workshop to discuss change in Simples Nacional


The event was attended by the Federal Revenue Secretary, Jorge Rachid, and tax specialists



The ETCO-Brazilian Institute of Ethical Competition held in São Paulo, on February 15, the workshop A Ampliação do Simples Nacional. The event brought together business representatives, tax administrators and economists specialized in taxation with the aim of analyzing the Bill of Law of the Chamber (PLC 125-2015) that expands billing limits and introduces changes in the rules of Simples Nacional and Individual Microentrepreneurs (MEI) .

The meeting included lectures by the Federal Revenue Secretary, Jorge Rachid; Luciano Garcia Miguel, representing the Finance Secretary of São Paulo, Renato Villela; economist Bernard Appy, director of the Center for Tax Citizenship; and economist Fernando Holanda Barbosa, from the Brazilian Institute of Economics of the Getúlio Vargas Foundation (Ibre / FGV). The four speakers criticized the text of PLC 125 that is about to be voted on in Congress.

The mediation was by ETCO president Evandro Guimarães, who explained the objective of the meeting: “Brazil needs to better understand what is being proposed in this PLC, what are the impacts on the business environment and on the country. Our intention was to bring together subject matter experts to share their views and help deepen that understanding ”.

The following are some of the main points of the project and the criticisms of the speakers:

Federal Revenue Secretary - Jorge Rachid1) Progressive expansion of the revenue limit to fit into the National Simple from the current R $ 3,6 million to R $ 14,4 million in 2018 for federal taxes (for ICMS, state, and ISS, municipal, the limit remains at R $ 3,6 million).

Second Jorge Rachid, this expansion will cause an annual loss of R $ 16,1 billion in federal revenue as of 2018, an opposite effect to the fiscal effort necessary to balance public accounts.

In the opinion of bernard appy, even within the current limits, Simples Nacional does not fulfill one of its initial promises, which was to favor companies that suffer the most from unfair competition from the informal economy. These companies usually have a low profit margin, which makes it impossible to join the program, which calculates the tax on billing. "Simples benefits those who need it least, which are companies with a high profit margin and entrepreneurs with high personal income," he said. According to him, the expansion of the billing limit will further increase this distortion.


According to a Fernando Holland Barbosa, no other country in the world has a benefit program for small businesses with a limit as high as that of Simples Nacional today. He says that the tax waiver of Simples reached R $ 2015 billion in 72,4. "The project is expensive and has had little impact on its purpose of reducing informality," he said. "The increase in the limit will only worsen this situation".


_FLA4098Although PLC 125 maintains the billing limits for ICMS and ISS at R $ 3,6 million, the São Paulo government representative stated that the increase in the limit for federal taxes will cause a reduction in federal transfer funds to states and municipalities. "There will be significant losses in these transfers," he said Luciano Garcia Miguel. The IRS estimates that the reduction could reach R $ 7,5 billion per year from 2018.


2) Increase in the Individual Microentrepreneur (MEI) billing limit from R $ 60 thousand to R $ 90 thousand per year

_FLA3884The Economist bernard appy finds raising the MEI limit “unnecessary and unjustifiable”. He sees a contradiction in the criteria that tax salaried workers and MEI participants. “Those who work with a formal contract and earn R $ 5 are taxed in the highest income tax bracket, 27,5%. If you receive the same amount as MEI, you pay 1% tax ”, he compared. "Brazil needs to decide if those who earn R $ 5 a month are rich, as they think the Income Tax is, or if they are poor, as the MEI proclaims."

The São Paulo tax representative stated that raising the limit will reduce the tax revenue of states and municipalities. "The state of São Paulo will lose R $ 100 million a year", said Luciano Garcia Miguel.

3) Inclusion of part of the alcoholic beverage industry and wholesale trade in Simples

The Secretary of Revenue foresees a reduction in tax collection in this segment. Second Jorge Rachid, companies in the sector, which today pay high rates, should opt for Simples Nacional to pay less taxes and may even split into several companies to remain within the required billing limits.

The Economist bernard appy cited another loss. According to him, in the beverage segment, taxation also has the function of controlling demand. Lower taxes encourage alcohol consumption.

4) Inclusion of small credit companies in Simples Nacional

The four speakers stated that this inclusion will represent the legalization of the loan without control by public agencies. "It will be the institutionalization of loan sharking", criticized the economist bernard appy.

The Economist Fernando Holland Barbosa he pointed out that PLC 125 does not establish an interest limit or control by the Central Bank on loans offered by the benefited institutions. "An absurd", he lamented.

Project with new limits for Simples Nacional will have an emergency regime

Photo: Ana Volpe (Agência Senado)
Photo: Ana Volpe (Agência Senado)

The senators approved on Tuesday (15) the vote on an urgent basis for the bill that increases the limits of classification in Simples Nacional. The House Bill (PLC) 125/2015 raises the ceiling of the annual gross revenue of the microenterprise from R $ 360 thousand to R $ 900 thousand and that of the small business from R $ 3,6 million to R $ 14,4 million.

Equally urgent PRS 84/2007, presented by the Economic Affairs Committee (CAE), which sets a global limit for the amount of Union debt, and the PRS 61/2015 that creates in the Senate the Independent Tax Institution (IFI). The institution should improve the mechanisms for the evaluation and social control of fiscal policy.

Special calendar

The proposed constitutional amendment that prohibits the Union from creating expenses for states and municipalities without corresponding transfers will have a special voting schedule. The agility in examining the PEC 128 / 2015 it was also approved this Tuesday.

Presented by Deputy Mendonça Filho (DEM-PE), the proposal has the same purpose as the PEC 84 / 2015, approved in August by the Senate and awaiting analysis by the Chamber of Deputies. Like the text of the deputies, the proposal defended by Senator Ana Amélia (PP-RS) has the objective of meeting an old demand from states and municipalities against the creation of federal programs with execution under the responsibility of these entities of the federation.

Source: Agência Senado (15/12)

Changes in Simples Nacional can be voted on until the end of the year, says Renan Calheiros

Jonas Pereira_Agency Senate
Photo: Jonas Pereira / Agência Senado

The president of the Senate, Renan Calheiros, assured this Tuesday afternoon (8) to a group of representatives of micro and small companies that he will talk to party leaders to vote, this year, on the House Bill (PLC) 125/2015. The proposal, which changes the rules of Simples Nacional to benefit this sector of the economy, was approved in the morning by the Economic Affairs Committee (CAE). The collegiate also approved an urgent request for the Plenary exam.

According to the text, the limit of annual gross revenue for the project to qualify as a microenterprise (ME) rises from the current R $ 360 thousand to R $ 900 thousand. To be considered a small business (EPP) the ceiling rises from R $ 3,6 million to R $ 14,4 million and to be an individual microentrepreneur (MEI), the limit goes from R $ 60 thousand to R $ 90 thousand. Anyone with a gross income of up to R $ 90 thousand can join the Simples do Empreendedor da Rural.

If approved with the changes made in the Senate, the bill goes back to the Chamber of Deputies. At the meeting with President Renan, the proposal rapporteur, Senator Marta Suplicy (PMDB-SP) and the government leader in Congress, Senator José Pimentel (PT-CE), explained the changes. According to him, most of the rules will only apply as of January 1, 2017, but the term of the so-called Refis do Simples, which will allow micro and small businessmen to pay tax debts in up to 120 months, may come into force in 2016.

Marta Suplicy explained that ICMS (state) and ISS (municipal) may be paid outside the Simples Nacional guide, in the part of the annual gross revenue that exceeds R $ 3,6 million.

- With the current economic scenario, there will be formal layoffs, there is no point in covering the sun with a sieve. Our role is to help those who, when they lose their jobs, want to become micro-entrepreneurs - argued the senator.

The Senate president has promised that he will discuss the matter with party leaders.

- I will talk to the leaders and we will do everything possible to vote the text in Plenary as soon as possible - said Renan Calheiros to representatives of various sectors, such as microbreweries, wineries and distilleries that, with the approval of the proposal, can join the Simples National.

The president of Sebrae, Afif Domingos, participated in the meeting and noted that after the approval of this project, the next challenge will be to make citizens aware that, when paying taxes, they acquire rights.

- Paid, so I demand. This must be the motto of the good citizen - said Renan Calheiros.

From the Press Office of the Senate Presidency

Source: Agência Senado (8/12)

Senate approves benefit for small businesses in tax substitution

Photo: Moreira Mariz (Agência Senado)
Photo: Moreira Mariz (Agência Senado)

The Senate Plenary approved on Tuesday (24) a project that benefits small companies in the payment of tax substitution. According to PLS 201/2013, by Senator Roberto Requião (PMDB-PR), the payment of ICMS on products or goods subject to tax substitution will now be in a single rate of 3,95%. The measure is only valid for micro and small businesses that are part of Simples Nacional.

The basic text of the project was approved by 57 votes to 1. During the vote, several leaders and senators expressed support for the initiative. Four editorial amendments, which do not alter the content of the article, were also approved. The project goes to the Chamber of Deputies.

Tax substitution

Tax substitution is a collection regime that obliges the taxpayer to pay the tax due by its customers along the marketing chain - that is, to pay ICMS on the sale of the product before it happens and even if it does not happen. Currently, small companies must pay, when purchasing products from their suppliers, the full ICMS tax rate of the purchase plus the reduced rate of the presumed sale, which is set at a maximum of 3,9%.

With the project, the full rate ceases to be part of the equation, and the ICMS due becomes only that of the presumed sale, which is the reduced rate. The maximum limit of this value goes from 3,9% to 3,95%.

Requião believes that the exemption will not harm the collection, on the contrary. He argues that granting tax benefits to small businesses is a way of heating the economy.

- The small capitalized entrepreneur spends on the formal market. He buys a refrigerator, a car, repairs his house, goes to a building materials store and all this is taxed - he observed.

The author of the proposal also understands that the tax substitution expedition is harmful to small companies, and the new measure is a way to alleviate it.

- As the small business owner cannot compensate, he has a much higher cost than large companies. Small businesses are breaking down and unemployed at the moment when this is crucial for the population - criticized Requião.

Senator Romero Jucá (PMDB-RR) expressed support for the project and said he believes it is an important step towards simplifying the national tax system.

- This measure does justice to micro and small companies. With the tax substitution, it ends up being a burden on those who later cannot compensate. It is necessary to create a neutral chain that does not burden or detract from competitiveness. We want to exempt the country from taxes and this project has this power - he celebrated.


The proposal also establishes a new hypothesis for the refund of ICMS. Today, the Kandir Law already assures these taxpayers the right to a refund of value when the presumed chargeable event (the sale) does not take place. The project also provides for compensation when the sale is made on a calculation basis lower than that estimated by the Department of Finance.

According to the rapporteur, Senator Gleisi Hoffmann (PT-PR), Complementary Law 147/2014 met several demands of this business segment regarding tax substitution, but “did not set limits on the severe imposition of taxes on micro and small businessmen”. The gap is now filled by the approval of Senator Roberto Requião's project.

Source: Agência Senado (24/03)

Fiscal adjustment comes to Simples Nacional

Simple nationalThe need for fiscal adjustment will cause the government to change the bill that expands the coverage of Simples Nacional in order to avoid loss of revenue. According to the Minister of Micro and Small Business (MMPE), Guilherme Afif Domingos, there will be a fine-tuning in the process so that the conditions for entrepreneurs improve, without budgetary impact. "The Federal Revenue Service is extremely concerned with avoiding the impact of exemptions," he said.

The government is considering presenting a substitute for the bill that is being processed in the Chamber of Deputies until March 19. It will propose a more modest increase in the annual revenue cap for industries that want to join the program. The current R $ 3,6 million would go to R $ 7,2 million and not R $ 14,4 million from the current text. The MMPE minister admits that the exemptions are hampered by the need for fiscal adjustment, but stresses that without it, there will be no resumption of growth.

Afif did not detail other changes under study, nor did he estimate the loss of potential revenue from the ongoing project. The minister believes that the approval of the project is not threatened by the government's disagreement with the allied base. According to him, the Micro and Small Business Front should have more than 300 congressmen. “Today the Congress is touched by dissent. If there is a consensus, it is this. ”

Source: Electronic Review / Correio Brasiliense (12/03)

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With new tax regime, Supersimples should reach 450 thousand new companies

Simple nationalThe year 2015 started with something new for at least 450 thousand Brazilian micro and small companies that could be included in Supersimples, based on the changes promoted in their taxation regime. Most of them are service activities that, in 2015, can benefit from a reduction of up to 40% in the tax burden. In addition, they will also enjoy the benefits of reducing bureaucracy resulting from the unification of eight taxes - municipal, state and federal - in a single payment slip.

In interviews with the press, the Minister of the Secretariat for Micro and Small Business, Guilherme Afif Domingos, said he believed that “the regime will change the lives of many Brazilians and that micro and small entrepreneurs will have more time to produce and sell”.

Since November 1, 2014, companies have started to choose the new regime. To join Supersimples, it is necessary to be within the billing ceiling, the value of which varies from State to State and is related to the participation in the Brazilian GDP. The limit goes from R $ 1,26 million in Amapá, for example, to R $ 3,6 million in São Paulo.

For ETCO's Executive President, Evandro Guimarães, the new regime may contribute to the expansion of the formalization of small businesses in the country. “In addition to avoiding high tax burdens, micro and small people often ended up opting for informality due to the difficulties to deal with tax bureaucracy, and also with the complicated processes for starting a business. ”

According to experts, the new rules of Supersimples, which underwent 81 changes in relation to the previous project, will also promote a significant reduction in the time to open or close a company, due to the reduction of bureaucracy linked to these processes.

Companies can switch to Simples Nacional until 30/01

simple nationalMicro and small companies that wish to change their current taxation regime and join Simples Nacional have until January 30 to make the option. Otherwise, they will only be able to migrate to the simplified taxation model in early 2016. The alert was made at a seminar by Grupo Sage, held last Thursday (15) in Rio de Janeiro.

“Companies that fall under Simples Nacional should not leave the option for the system for the last minute. Especially if there are pending issues with the Tax Authorities ”, says Valdir de Oliveira Amorim, tax consultant at IOB Sage. The new companies, opened in 2015, have 30 days after the last registration (municipal or state) to request inclusion in Simples.


Source: SEGS.COM.BR (20/01)

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