Before being revoked by the Ministry of Finance, the new rules related to PIX monitoring raised numerous doubts among the Brazilian population, especially small business owners and freelancers, who feared paying more taxes when receiving payments for their services. This was because the Federal Revenue Service would monitor financial transactions exceeding R$5,000 per month for individuals and R$15,000 for legal entities, automatically cross-referencing data through the e-Financeira, aiming to curb practices such as tax evasion and money laundering. Kályta Caetano, Head of Accounting at the management platform MaisMei, assures that the measure was not intended to ‘tax PIX,’ but clarifies that, even after the revocation, informal workers may still face a higher tax burden, with formalization as individual microentrepreneurs (MEI) being the best path for freelancers to avoid unnecessary taxes in the future.
First, what was proposed is a global practice that would allow the Federal Revenue Service to cross-reference data from all financial institutions to identify potential discrepancies when a taxpayer files their income tax return. This was already applied to traditional banks. In the case of MEIs, the tax burden is already defined and paid monthly through DAS (Documento de Arrecadação do Simples Nacional). In other words, if a freelancer is formalized under this regime, they will not pay more taxes, as long as they also do not exceed their annual revenue limit, currently set at R$81,000. Informal workers do not have this security.
In the construction sector, for example, in a hypothetical scenario where a bricklayer—working as an MEI—receives transfers from clients to purchase construction materials, we can assume that in 2024, they moved R$130,000. Out of this amount, R$81,000 would be the actual revenue (payment for their services), and R$49,000 would correspond to reimbursements for materials purchased on behalf of their clients.
In this case, in addition to reporting their revenue (R$81,000) in the Annual Declaration of Simples Nacional (DASN), they must keep purchase invoices for the materials and receipts of the transfers made by clients to prove that the R$49,000 is not revenue but a reimbursement.
Regarding the Individual Income Tax (IRPF), the accounting and small business management expert explains that this is where MEI formalization and tax planning allow workers to pay fewer taxes or even be exempt from them.
‘The IRPF calculation for MEIs must consider legal deductions and the separation between business income (MEI revenue) and personal income. For services like those in construction, 32% of gross revenue is deducted, in addition to expenses. However, if a freelancer is not an MEI, their entire income must be declared without deductions, meaning they will likely pay more taxes,’ explains Kályta Caetano.
Comparison Between MEI and Informal Worker
Using the earlier example of R$81,000 in revenue:
- Non-taxable income: R$81,000 x 32% = R$25,920.
- Net profit: R$81,000 – R$25,000 (expenses) = R$56,000.
- Taxable income: R$56,000 – R$25,920 = R$30,080.
Since the taxable income of R$30,080.00 is below the IRPF exemption limit of R$30,639.90 for 2025, the bricklayer would be exempt from paying IRPF.
But if they were informal—without MEI registration and not paying taxes—their entire income of R$81,000 would be considered taxable. Calculating IRPF in this scenario:
- First R$30,639.90: Exempt.
- Excess: R$50,360.10.
- R$20,080.10 at 7.5% rate: R$1,506.01.
- R$30,280.00 at 15% rate: R$4,542.00.
- Total IR due: R$6,048.01.
Therefore, as an MEI, this worker would have paid taxes through DAS (R$80.90/month in 2025 for services), totaling R$970.80 per year. The savings would be R$5,077.21 compared to the R$6,048.01 they would owe under Individual Income Tax (IRPF).
If the bricklayer were a formalized freelancer paying social security taxes via Carnê-Leão, the INSS would be calculated as 20% of taxable income (R$81,000), amounting to R$16,200 per year.
Additionally, they would still owe the same R$6,048.01 in IRPF on the amount above the exemption limit, totaling R$22,248.01 in taxes—over R$21,000 more than the MEI (R$970.80 via DAS).
‘This scenario reinforces the importance of good financial organization through simple steps like separating personal and business finances and keeping all possible receipts. Formalization becomes even more crucial, as it protects against fines and tax penalties, with the MEI regime being the one that pays the least taxes for informal workers or formalized freelancers paying via Carnê-Leão,’ emphasizes Kályta Caetano.
