Brazil's Senate unanimously approved on Thursday (15) a bill that forgives federal tax debts owed by individual microentrepreneurs, known as MEIs, and raises the regime's annual revenue cap. The vote was 78 to zero, according to Agência Senado, the chamber's news service. The bill, PLP 186/2026, cleared the lower house on Wednesday and now goes to President Luiz Inácio Lula da Silva for signing.
The forgiveness covers debts registered through October 13, 2026, whether or not they have been formally entered as collectible federal debt, a registry known as Dívida Ativa. It includes MEI regime contributions, accessory obligations, interest, fines and charges, including debts under administrative or judicial collection and active or terminated installment plans. According to the rapporteur, Senator Carlos Fávaro, about 3.6 million entrepreneurs should benefit, with debts totaling R$ 12.57 billion.
The benefit comes with conditions. The entrepreneur must file a request, drop any lawsuits over the debts and waive the related claims, with no refund of amounts already paid. To keep the write-off, the MEI must stay current on contributions due in the six months after the law takes effect, expected in 2027, according to Poder360. Missing payments cancels the forgiveness.
Revenue cap and hiring
The bill raises the MEI's annual gross revenue cap from R$ 81,000 to R$ 110,000 in 2027 and R$ 140,000 from 2028, with proportional limits for businesses opened mid-year. The government justified the adjustment with accumulated inflation: the IPCA consumer price index rose 55.4% between January 2018, the last update to the cap, and May 2026, Poder360 reported. The bill also allows MEIs to hire up to two employees instead of one, paid at least the minimum wage or the category's floor, and permits temporary replacements during legal leave.
The vote provides the legal basis for Prospera MEI, a six-part package announced by Lula. Beyond tax forgiveness, the program includes renegotiating MEIs' bank debts through Desenrola 3.0, a federal debt-renegotiation program, and transfers of up to R$ 5,000 per entrepreneur for investment in the business itself, via Pix MEI. Access rules for these two measures are still to be regulated.
Brazil has about 17 million MEIs, a figure Fávaro cited from the bill's statement of purpose. Opposition senators such as Carlos Portinho and Rogério Marinho said the cap update was overdue and was being used for electoral purposes, but still voted in favor. For small producers, shopkeepers and service providers, clearing the debt restores the company's clean registry and reopens access to banks and formal suppliers; for consumers, formalization tends to expand invoice issuance, which gives legal backing to purchases.