About 1.8 million individual microentrepreneurs (MEI) need to be on the lookout. If they do not settle the taxes and overdue obligations until next Tuesday, 31, they will be included in the Active Debt of the Union and will be subject to judicial collection.
According to the Federal Revenue, there are 4.3 million defaulting micro-entrepreneurs, who owe R$ 5.5 billion to the government. This is equivalent to almost a third of the 12.4 million MEI registered in the country.
However, enrollment in the active debt is only valid for unpaid debts exceeding R$1,000, including principal, fine, interest and other charges. Currently, the 1.8 million MEI in this situation owes R$ 4.5 billion.
With a simplified taxation regime, MEI only collect the contribution to Social Security and pay, depending on the field of activity, the Tax on the Circulation of Goods and Services (ICMS) or the Tax on Services (ISS). ICMS is collected from the states; and the ISS, to city halls.
To settle the debts, the micro-entrepreneur can issue a Collection Document of the Simples Nacional (DAS), in the Simples Nacional portal. The debt can be paid in installments. DAS can also be issued by the MEI App available for Android or iOS phones.
Whoever switches to active debt can have significant losses. The micro-entrepreneur may have the National Register of Legal Entities (CNPJ) canceled, no longer being entitled to INSS benefits such as sick pay and retirement. The debtor is also excluded from the Simples Nacional taxation regime, with lower tax rates and may face difficulties in obtaining financing and loans.
Inclusion in the active debt register also increases the debt amount. Those who have pending with the National Institute of Social Security (INSS) will be charged in court and will have to pay at least 20% more on the debt amount to cover the federal government’s expenses with the process.
In relation to ISS and ICMS, it will be up to local governments to include the debtor’s CNPJ in the outstanding state or municipal debt. The MEI will have to pay additional fines on the amount due.