The tax reform enacted this year created the figure of the nano-entrepreneur, a new category designed to include low-income self-employed professionals with annual gross revenue below R$40,500 – that is, up to 50% of the current ceiling for individual micro-entrepreneurs (MEI), currently set at R$81,000. The proposal offers the possibility of tax reductions and more simplified obligations, without the need for a CNPJ (Brazilian business registration number). However, since it only takes effect in January 2026, the scenario is still surrounded by uncertainties, such as which benefits these workers will have access to. But for those who are already MEIs and occasionally have revenue below the proposed threshold for the new category, is it worth switching to nano-entrepreneur to pay fewer taxes?
Kályta Caetano, head of Accounting at MaisMei, which assists in managing the businesses of individual micro-entrepreneurs through a SuperApp, evaluates that this question depends on factors such as the MEI’s line of work and business expansion plans. ‘Considering that a self-employed professional with an annual revenue pattern below R$40,500 is registered as an MEI only to formalize their business and secure social security benefits, and if these benefits are maintained for the nano-entrepreneur, it may indeed be worth it. However, the MEI not only already offers a small and simplified tax burden but also provides room for the entrepreneur to invest in their business and adopt management practices that enable higher earnings. In other words, even if in a given year their gross revenue is below R$40,500, if they aspire to increase their revenue potential in the next cycle, the ideal is to remain as an MEI,’ she says.
Currently, the monthly contribution (DAS-MEI) for individual micro-entrepreneurs ranges from R$75.90 to R$81.90, depending on the entrepreneur’s line of work. Among other important benefits guaranteed to active MEIs are maternity pay, incarceration allowance, temporary incapacity benefit (formerly known as sick pay), death pension, and the right to retirement.
As for the nano-entrepreneur, initially, they will be exempt from the Tax on Goods and Services (IBS) and the Contribution on Goods and Services (CBS), which are part of the dual Value-Added Tax (VAT) proposal in the tax reform. However, this does not mean the category will not have to pay taxes starting next year. There is anticipation for the definition, for example, of which social security contributions these workers will have to pay to access social security benefits.
Among the professions that can join the new regime are artisans, vendors, street vendors, domestic workers, and other service providers. Informal workers such as motorcycle taxi drivers will also be able to join.
Kályta Caetano emphasizes that app-based drivers and delivery workers will have a special regime within the ‘nano-entrepreneur’ category, which, in this case, may be more advantageous. ‘Since these activities have very high operational costs, the new legislation will allow only 25% of gross revenue to be considered for classification purposes. This means these professionals can earn up to R$162,000 per year, as long as this equivalent percentage does not exceed R$40,500,’ explains the MaisMei expert.
Absence of CNPJ
Another point worth considering is that nano-entrepreneurs can operate as individuals, without needing the National Registry of Legal Entities (CNPJ) to regularize their activities. In this case, Kályta Caetano stresses that business growth aspirations should be taken into account. ‘Besides lending greater credibility when negotiating with third parties, having a CNPJ offers advantages such as issuing invoices, purchasing vehicles with discounts, the possibility of participating in bids, and access to financial services and health plans with better conditions. Therefore, the MEI is an excellent tool for those who want to save on these expenses while ensuring their businesses grow sustainably,’ she says.
Without a CNPJ, there is also the risk of higher taxation on Income Tax. ‘As an individual, the nano-entrepreneur does not have access to the simplified MEI taxation (fixed monthly amount). Therefore, they may be taxed based on the progressive IR table, leading to rates of up to 27.5%, since the amount they can earn as an individual exceeds the IRPF exemption ceiling (R$33,888.00) in 2025,’ explains Kályta Caetano.
