Brazil’s Senate approves debt write-off for micro-entrepreneurs
Fedir Kryshtovskyi16
October
2026
09:33
On October 15, Brazil’s Senate approved a bill on the full write-off of federal debts for individual micro-entrepreneurs and an increase in the annual income ceiling for this business category. The document was supported by 78 senators, with no votes against.
As The Rio Times reports, federal debts of micro-entrepreneurs outstanding as of October 13, 2026, will be written off, regardless of whether they were entered in the overdue debt register. According to government estimates, about 3.6 million businesses have registered debts totaling 12.57 billion Brazilian reais, or approximately $2.5 billion.
Conditions for debt write-off
To receive the benefit, individual micro-entrepreneurs must submit an application and withdraw lawsuits concerning debts subject to write-off. They must also pay current contributions for six months after the law takes effect. If an entrepreneur misses such payments, the debt write-off will be revoked.
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The MEI category covers sole proprietorships, including street vendors, couriers, and hairdressers. This form of entrepreneurship makes it possible to issue invoices and pay a single monthly contribution that includes taxes and social insurance.
Income limits and employees
The bill provides for raising the maximum permitted annual income for MEIs from 81,000 to 110,000 reais in 2027, and to 140,000 reais in 2028. In addition, micro-entrepreneurs will be able to hire up to two employees instead of one in industry, trade, services, and rural areas.
Brazil’s Chamber of Deputies approved the same text a day earlier, by 461 votes to four. To complete the procedure, the bill must be signed by President Luiz Inácio Lula da Silva; the law will take effect after publication in the official gazette.
