MEI or Simples Nacional: which is worth more
The difference is not only the tax: it is the revenue cap, headcount, permitted activities and the paperwork that comes with each.
The simplified regime in numbers
A yearly revenue cap, at most one employee, and only listed activities. The tax is a fixed monthly amount regardless of revenue — most of it social security, which secures retirement and sickness benefits. At the cap, the effective burden is around 1.3% of revenue.
When it stops working
Three triggers: exceeding the revenue cap, hiring a second employee, or working in an activity outside the permitted list — which excludes most regulated professions.
The next tier up
Under Simples Nacional the tax becomes a percentage of revenue. The jump is steep, and for professional services the payroll ratio rule decides whether you land in the cheaper annex. Accounting fees and monthly filings also appear.
How to decide
If you fit in the simplified regime, stay there. When a limit tightens, simulate your annex’s effective rate in the Simples Nacional calculator and check your pricing in the hourly rate calculator.