Internal Revenue Service extends deadline for MEI to settle debts

The Internal Revenue Service announced on Monday (30) the extension of the deadline for the settlement of the debts of Individual Microentrepreneurs (MEI). With the change, the deadline that would be this Tuesday (31) was changed to September 30th.

Debts outstanding in October will be sent to the Attorney General of the National Treasury (PGFN) for registration in Active Debt of the Union.

Taxpayers who have debts within the scope of 2016 and who have not paid in installments this year will have their debts sent to the Attorney’s Office. Micro-entrepreneurs with debts only from 2017 or later, or who have paid in installments in 2021, will not have their debts sent at this time.

The debts of the 2016 competence are declared by DASN (Annual Declaration of the MEI) of 2017.

According to the Federal Revenue, there are 4.3 million delinquent micro-entrepreneurs, who owe a total of 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 in excess of R$1,000, including the principal amount, fine, interest and other charges. Currently, there are 1.8 million MEI in this situation, and they owe R$ 4.5 billion in total.

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.

According to the Internal Revenue Service, despite losing several tax benefits and social security rights, the MEI in debt to the Federal Revenue does not have its CNPJ canceled, contrary to what Sebrae released last week.

O CNN Brasil Business contacted Sebrae to confirm whether or not the CNPJ had been lost, but the press office informed that it would not yet comment on the matter*.

Even if the entrepreneur does not lose the CNPJ, the Revenue, however, states that whoever goes into active debt may have significant losses. Micro-entrepreneurs may be 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.

*This text will be updated as soon as there is an official position from Sebrae or the Internal Revenue Service on the issue of canceling or not the CNPJ of MEI in debt to the government.

(With information from Agência Brasil)