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Complete Guide: IRPF and DASN-SIMEI for MEIs in 2024!

Complete Guide: IRPF and DASN-SIMEI for MEIs in 2024!

For small individual entrepreneurs (MEI), understanding tax obligations is essential to maintaining regular status as a legal entity and as an individual. DASN-SIMEI, the annual National Declaration for Individual Small Entrepreneurs, is one of these fundamental commitments.

In addition to the DASN-SIMEI, the MEI may also need to declare personal income tax (IRPF), depending on its revenue and other income. Clarifying these points is essential to avoid pitfalls and keep your finances up to date.

What are the annual MEI obligations?

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MEI has the advantage of a simplified tax system, but this does not exclude the need to comply with certain tax obligations. Each year, you must submit the DASN-SIMEI by May 31, regarding the previous year’s earnings. This declaration is crucial to confirm the amounts received and ensure MEI continues to benefit from the tax benefits of the scheme.

How to fill DASN-SIMEI?

Completing DASN-SIMEI is a straight-through process Federal Revenue Portal. After reaching the CNPJ, the entrepreneur must report the revenues obtained from services and/or trade during the year. It is important to stress that even if there is no movement, the ad should be sent as “no movement”.

Does MEI need a personal income tax declaration?

  • Asset condition: If MEI has assets whose total value exceeds R$800,000.
  • Total return: If other sources of income added to MEI profits exceed R$ 30,639.90.
  • Investment activities: Such as selling stocks or other investments above certain limits.

If you fall into any of these situations, you must declare an IRPF. To achieve this, it is necessary to correctly calculate taxable income, distinguishing it from exempt income depending on the type of activity carried out by the MEI.

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How to calculate and report your income

Calculate your income: Start with transactions and expenses, subtract expenses and apply exemption rates according to the type of service or trade you perform. This taxable income should be the basis for the income tax declaration.

To report these amounts in the declaration, the MEI must fill out the “Exempt and non-taxable income” form with its exempt parts and the “Taxable income received from a legal entity” form with its taxable income. At this stage, it is also important to inform the total INSS paid, the data in the DASN-SIMEI annual declaration receipt.

Understanding and complying with these obligations not only keeps the MEI in compliance with tax laws, but also ensures that potential benefits, such as retirement and other social rights, are guaranteed. Therefore, it is important to pay attention to these processes, preferably with the support of an accountant, to avoid mistakes that may be costly in the future.