How to declare MEI on income tax

Declaring your MEI (Individual Microentrepreneur) on your income tax return may seem like a bureaucratic maze at first glance, but with the right knowledge, the process becomes a well-marked path.

For Individual Microentrepreneurs (MEI), filing their Personal Income Tax (IRPF) is a crucial moment to keep their finances up to date and avoid surprises with the tax authorities.

After all, being an MEI does not automatically exempt you from the responsibility of reporting to the Federal Revenue Service.

Find out everything below!

Declare the MEI on income tax

Why is the MEI income tax declaration so important?

Because it connects your performance as an entrepreneur to your obligations as an individual, ensuring that you don't pay more taxes than necessary or fall into the fine mesh.

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With more than 15 million MEIs registered in Brazil by 2025, according to data from Sebrae, understanding this process is essential for the financial sustainability of your business.

Let's dive into the details, clearly demystifying each step and offering insights to transform this obligation into a financial organization opportunity.

Think of your tax return as a treasure map: each correctly filled-out line brings you closer to maintaining your tax peace of mind.

So, with a strategic approach, you not only comply with the law, but also gain clarity about your financial situation.

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Ready to navigate this map? Let's get started!

1. Understanding the mandatory declaration for MEI

First, it is essential to understand when an MEI needs to declare income tax as an individual.

Contrary to what many people think, being an MEI does not automatically exempt you from paying your IRPF.

The obligation depends on how much taxable or exempt income you, as an individual, received in the previous year.

For example, in 2025, if your taxable income (such as wages or distributed profits) exceeds R$ 30,639.90, you must declare.

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In addition, exempt income, such as MEI profits, may also require delivery if they exceed R$1,000,000.

A crucial point is the separation between the MEI's revenue and the actual profit.

Gross revenue (everything that goes into the cash register) is not the same as taxable income.

To calculate profit, you deduct the business's operating expenses, such as rent, raw materials, or electricity.

For example, João, an MEI who provides graphic design services, earned R$1,400,000 in 2024.

After deducting R$ 20 thousand in proven expenses, your profit was R$ 60 thousand.

Part of this profit may be exempt from taxation, depending on the type of activity, but he will still need to assess whether the total income requires him to declare it.

Furthermore, the Federal Revenue Service requires that the MEI maintain strict control over income and expenses.

This not only makes the declaration easier, but also avoids problems in the event of an inspection.

Rhetorical question: have you ever stopped to calculate how much of your revenue is actually profit?

Organizing this information now can save you headaches later.

Below, we will detail how to calculate exempt and taxable profit.

Table: Mandatory criteria for declaring IRPF as an MEI (2025)

Criterion	Reference Value	Observation
Taxable income	Above R$ 30,639.90	Includes distributed profits, salaries or other sources of income.
Exempt or non-taxable income	Above R$ 200,000.00	Includes part of the MEI's profit, depending on the activity (commerce, industry, etc.).
Annual gross revenue (MEI)	Up to R$ 81,000.00 (2024)	Revenue limit for classification as MEI, subject to annual adjustments.

2. Step by step guide to calculating exempt and taxable income

Calculating MEI profit is like putting together a puzzle: each piece (revenue, expense, exemption percentage) needs to fit together perfectly.

The first step is to add up all gross revenue for the year, recorded in the Monthly Gross Revenue Report, which is mandatory for MEI.

Then subtract proven operating expenses, such as electricity, internet, materials, or rent.

The result is the profit obtained, which will be divided into two parts: exempt and taxable.

The Federal Revenue Service establishes exemption percentages based on the type of MEI activity.

For example, for commerce and industry, 8% of gross revenue is presumed to be exempt profit; for services, the percentage is 32%.

Let's illustrate with an example: Maria, a MEI confectioner, earned R$1,000,000 in 2024 and spent R$1,000,000 on ingredients and packaging. Her net profit was R$1,000,000,000.

Since your activity is classified as industrial, 8% of your revenue (R$ 4,800) is exempt. The remainder (R$ 40,200) is taxable and must be reported in your tax return if you meet the mandatory threshold.

Furthermore, another important aspect is documentation.

Keeping invoices and receipts organized is essential to prove expenses and avoid questions from the IRS.

Furthermore, exempt income must be reported on the “Exempt and Non-Taxable Income” form, while taxable income goes to the “Taxable Income Received from a Legal Entity” or “Income from Non-Salary Employment” form.

This separation ensures that you only pay the tax due, optimizing your tax burden.

Table: Exemption percentages by type of MEI activity

Type of Activity	Exemption Percentage	Example Activities
Business	8%	Clothing stores, mini-markets, stationery stores
Industry	8%	Confectioneries, craft factories, sewing
Services	32%	Consulting, graphic design, hairdressing
Passenger Transportation	16%	App drivers, taxi drivers

3. Completing the Income Tax return as an MEI

Now that you've calculated your profit, it's time to fill out your tax return.

The Federal Revenue program (IRPF 2025) is intuitive, but requires attention to detail.

Start by reporting exempt income on the corresponding form, using code 09 (Business Activity Profit).

Taxable income must be recorded according to its source, such as “Income from Non-Salary Employment” for services provided to individuals.

Make sure the values match the Monthly Income Report.

A common mistake is mixing personal and business finances.

To avoid this, keep separate bank accounts and record all transactions.

For example, Ana, a self-employed individual (MEI) who works in digital marketing, used her personal account to receive payments from customers.

When filing, she had difficulty separating her personal and professional income, which delayed her filing.

A good practice is to use financial management tools, such as expense tracking apps, to organize everything throughout the year.

Also, review the statement before submitting it.

The Federal Revenue Service cross-references MEI data with other sources, such as electronic invoices and customer statements.

If there are inconsistencies, you may be caught in the crosshairs.

So take the time to check each field and, if necessary, consult an accountant to ensure accuracy.

This attention to detail turns the statement into a financial planning tool, not just an obligation.

4. Strategies to optimize your statement and avoid the fine mesh

Optimizing your MEI income tax return goes beyond filling out forms: it's an opportunity to plan your finances.

An effective strategy is to maximize allowable deductions, such as health care, education, or social security contributions.

For example, if you, as a MEI, pay INSS via DAS (Simples Nacional Collection Document), you can deduct part of this amount in the declaration, reducing the taxable base.

Another smart approach is to plan your tax plans ahead of time throughout the year. Keep a digital or physical ledger, recording all income and expenses.

This not only makes it easier to calculate profit, but also serves as evidence in the event of an inspection.

According to Sebrae, 70% of the MEIs that face problems with the Federal Revenue do so due to a lack of document organization.

Investing time in financial management now is like building a solid bridge to cross the river of bureaucracy.

Finally, consider the use of technology.

Accounting software designed for MEIs, such as ContaAzul or QuickBooks, helps automate expense recording and generate reports compatible with the IRS.

These tools do not replace an accountant, but they complement the work, reducing errors and saving time.

This way, you can focus on business growth, while the declaration becomes a smooth and secure process.

5. Frequently asked questions about declaring MEI on income tax

Many MEIs have questions about how to file their income tax return, especially because the tax system can seem complex.

Below, we have compiled the most common questions and their answers, organized in a table for easy reference.

This information helps clarify critical points and ensures you are prepared to meet your tax obligations.

Table: Frequently asked questions about the MEI declaration

Question	Response	Practical Tip
Does every MEI need to declare income tax?	No, only those who meet the mandatory criteria (e.g. income above R$ 30,639.90).	Check your total income, including profit from MEI and other sources.
Can I deduct all MEI expenses?	Only proven expenses related to the business, such as raw materials or rent.	Store invoices and receipts digitally for easy organization.
What happens if I don't declare?	You may be caught in the fine net, pay fines or have your CNPJ suspended.	Set reminders for the due date (usually May 31st).
Do I need an accountant to declare?	It's not mandatory, but an accountant can help in complex cases or to optimize deductions.	Consider hiring a professional if your revenue is close to the limit.
How to declare distributed profits of MEI?	Report exempt income on the “Exempt Income” form and taxable income on the corresponding form.	Use the Monthly Income Report to ensure accurate figures.

Conclusion: Declaring the MEI on income tax

Declaring your MEI on your income tax doesn't have to be a burden.

With organization, attention to detail, and smart strategies, you can transform this obligation into a financial planning tool.

From accurately calculating profits to choosing the right tabs in the IRS program, every step is an opportunity to keep your business compliant and your finances under control.

Just as a gardener patiently tends to his plants, you can cultivate a healthy relationship with your tax obligations, reaping peace of mind and security in the future.