Business

Brazil’s tax system for entrepreneurs reflects a changing labor landscape

mei Brazil’s tax system for entrepreneurs reflects a changing labor landscape Worker selling churros in Rio de Janeiro
Worker selling churros in Rio de Janeiro

As the crisis struck the Brazilian economy, millions saw themselves unemployed and looking for a way to earn a living. In this scenario, the Individual Micro Entrepreneur system (or MEI) became an appealing alternative to many new business owners or independent professionals. But even a tool to simpler and cheaper tax rates is not immune to its own controversies. 

The MEI system was created in July 2008 as an attempt to formalize a larger share of the workforce. It allows entrepreneurs with annual earnings of BRL 81,000 to have a corporate tax ID (CNPJ), entitling them to social...

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