Do you know which tax regime is ideal for your business?
Posted: Sun Jan 19, 2025 10:32 am
Do you know which tax regime is most suitable for your company? The first observation, in this case, is the importance of knowing it, as complications can occur due to a wrong choice in relation to the existing regimes.
For this reason, we will present below everything you need to know to understand the subject. It is worth reading and therefore deserves your full attention. Enjoy and happy reading!
What is the tax regime?
A set of legal regulations that establish which taxes are to be applied to legal entities, how they should be paid and within which periods they should be carried out. Basically, this is what the tax regime is all about.
When done incorrectly, collecting taxes results in tax ios database and, depending on the situation, in unpleasant legal proceedings for the business.
What are the existing regimes?
To continue, let's look at the types of tax regimes that currently exist.
MEI
We will start with MEI, an acronym for Micro Individual Entrepreneur. As the name suggests, this tax regime is intended for entrepreneurs who do not have partners, with an annual revenue ceiling of R$81,000.
Of all the regimes, MEI is less bureaucratic in terms of collection and amount of taxes, as it does not require the payment of federal taxes, such as COFINS (Contribution for the Financing of Social Security) and IRPJ (Corporate Income Tax).
Simple National
Aimed at micro and small companies whose annual revenue does not exceed 4.8 million reais, Simples Nacional was created with the objective of simplifying the process of collecting the tax burden.
Everything is done through a single document, the DAS (Documento de Arrecadação do Simples Nacional): all taxes are collected and paid at once.
Real Profit
Any organization can opt for the Real Profit tax regime. However, its application is mandatory for all businesses that earn more than R$78 million per year.
The company's revenue is the basis for calculation, from which costs and expenses are subtracted. This formula is used to determine the actual profit. In Real Profit, the entrepreneur must keep his/her financial entry system always up to date, as this documentation will serve as support for the tax burden applied.
Presumed Profit
Another type of tax regime is the Presumed Profit. Just like the Real Profit, all companies can choose it, as long as they do not exceed an annual turnover of 78 million reais.
The amount of taxes is based on the average profit of organizations (hence the “presumed”) in their field of activity, for example. Companies that obtain higher profits than the general average in their niche will have advantages when opting for this alternative.
For this reason, we will present below everything you need to know to understand the subject. It is worth reading and therefore deserves your full attention. Enjoy and happy reading!
What is the tax regime?
A set of legal regulations that establish which taxes are to be applied to legal entities, how they should be paid and within which periods they should be carried out. Basically, this is what the tax regime is all about.
When done incorrectly, collecting taxes results in tax ios database and, depending on the situation, in unpleasant legal proceedings for the business.
What are the existing regimes?
To continue, let's look at the types of tax regimes that currently exist.
MEI
We will start with MEI, an acronym for Micro Individual Entrepreneur. As the name suggests, this tax regime is intended for entrepreneurs who do not have partners, with an annual revenue ceiling of R$81,000.
Of all the regimes, MEI is less bureaucratic in terms of collection and amount of taxes, as it does not require the payment of federal taxes, such as COFINS (Contribution for the Financing of Social Security) and IRPJ (Corporate Income Tax).
Simple National
Aimed at micro and small companies whose annual revenue does not exceed 4.8 million reais, Simples Nacional was created with the objective of simplifying the process of collecting the tax burden.
Everything is done through a single document, the DAS (Documento de Arrecadação do Simples Nacional): all taxes are collected and paid at once.
Real Profit
Any organization can opt for the Real Profit tax regime. However, its application is mandatory for all businesses that earn more than R$78 million per year.
The company's revenue is the basis for calculation, from which costs and expenses are subtracted. This formula is used to determine the actual profit. In Real Profit, the entrepreneur must keep his/her financial entry system always up to date, as this documentation will serve as support for the tax burden applied.
Presumed Profit
Another type of tax regime is the Presumed Profit. Just like the Real Profit, all companies can choose it, as long as they do not exceed an annual turnover of 78 million reais.
The amount of taxes is based on the average profit of organizations (hence the “presumed”) in their field of activity, for example. Companies that obtain higher profits than the general average in their niche will have advantages when opting for this alternative.