Do you have this question too? Let’s clear it up so you don’t end up with pending problems with the IRS
A question that always comes to the minds of individual microentrepreneurs (MEIs) every year around this time is: should I file personal income tax? Or corporate income tax? Or both? It is worth remembering that the deadline to file corporate income tax is July 31.
This doubt is completely understandable. The rules do not seem to be very clear, the information, especially given by the media, most of the time makes the situation even more confusing.
Initially, we can say that the MEI is required by law to prepare the Invoicing Declaration for the legal entity. Every year by May 31, the MEI must submit, on the Simples Nacional website or on the Entrepreneurs Portal, the Simplified Annual Declaration of the Individual Microentrepreneur (DASN-SIMEI). In this declaration, the MEI must indicate the total of its gross revenues for the previous year.
We can say that by doing so, MEI fulfills its obligations as a legal entity towards the Federal Revenue Service. It would therefore be the equivalent of what a company that is not a MEI does in its corporate income tax return.
But the obligations of the microentrepreneur towards the Federal Revenue Service do not stop there. This is only the first part. Based on the annual revenue, it is necessary to calculate the MEI profit because this value must be informed.
It is necessary to correctly calculate the profits obtained from the MEI activity in order to correctly file the personal income tax return, if the microentrepreneur needs to declare it.
It is necessary to do some calculations to be sure exactly how to act correctly to avoid getting into trouble with the tax authorities.
PJ’s Commitments
Your commitment as a Legal Person is basically reduced to two obligations: to pay the DAS-MEI every month and every year, until May 31st, to carry out the DASN-SIMEI, communicating your Gross Income of the previous year to the Revenue Agency.
As an individual, each year you must determine whether or not you will be required to file a Personal Income Tax Return (DIRPF) or IRPF, officially called the Annual Adjustment Return by the Federal Revenue Service. This return normally ends in 2023 on May 31.
When carrying out the DASN-SIMEI, the MEI must report exclusively the revenues, i.e. the total received, in the exercise of its MEI activity, in the exercise of its MEI activity.
When he is in his “Individual Person” status, he must account for all his activities like any other Brazilian citizen, providing the Federal Revenue with information on all his income, investments, assets and even debts, if applicable.
Regarding income, in addition to those related to your activities as MEI, you must declare all other sources of income you have, such as salaries, if you have a formal job, rent, profits or dividends from your investments, pensions or other benefits such as Bolsa Família, Emergency Aid/Auxílio Brasil or any other taxable income received in 2022.
Source: Sebrae
Source: Terra
Rose James is a Gossipify movie and series reviewer known for her in-depth analysis and unique perspective on the latest releases. With a background in film studies, she provides engaging and informative reviews, and keeps readers up to date with industry trends and emerging talents.
