Simples Nacional Explained: Rates and Who Can Opt In

2026-08-03T00:00:00+00:00

The Simples Nacional is Brazil’s simplified tax regime for micro and small companies — an ME or an EPP with revenue up to R$ 4.8 million a year. It merges eight federal, state and municipal taxes into a single monthly payment, the DAS, and the rate depends on the activity and the revenue: it starts at 4% for commerce and reaches up to about 33% for the highest service brackets. Which of the five annexes applies, and whether the Fator R lowers the rate, is defined by the accountant — a traditional firm or an online accounting service — when the company opts in.</p>

What the Simples Nacional is</a></h2>
The Simples Nacional replaces separate tax payments with one monthly slip, the DAS (Documento de Arrecadação do Simples Nacional), that bundles eight taxes: the federal IRPJ, CSLL, PIS/Pasep, COFINS, IPI and CPP (the employer social security), the state ICMS and the municipal ISS. It is open to a microempresa (ME), with revenue up to R$ 360,000 a year, and to an empresa de pequeno porte (EPP), from there up to R$ 4.8 million. The MEI is a separate simplified track (SIMEI) for revenue up to R$ 81,000. Above R$ 4.8 million, a company must move to Lucro Presumido or Lucro Real the following year.</p>
There is also a sublimit of R$ 3.6 million: a company earning between that and R$ 4.8 million stays in the Simples Nacional for the federal taxes but pays the ICMS and the ISS separately, outside the DAS.</p>
Who can opt in</a></h2>
Any ME or EPP within the R$ 4.8 million ceiling can opt in, as long as its activity and ownership are not on the list barred from the regime. A new company chooses the regime during registration — now in the Receita Federal’s MAT step, before the CNPJ is issued — while a company that is already running can request the Simples Nacional at the start of the calendar year.</p>
Brackets and rates: the five annexes</a></h2>
The rate rises across six revenue brackets, from up to R$ 180,000 in the first band to the R$ 4.8 million ceiling in the sixth. Which annex applies depends on the activity:</p>
Annex</th> Activity</th> Starting rate</th> Top rate</th></tr></thead>

I</strong></td> Commerce (shops, resale)</td> 4.0%</td> 19.0%</td></tr>
II</strong></td> Industry (manufacturing)</td> 4.5%</td> 30.0%</td></tr>
III</strong></td> Services: installation, repair, travel agencies, training</td> 6.0%</td> 33.0%</td></tr>
IV</strong></td> Services: cleaning, security, construction, legal</td> 4.5%</td> 33.0%</td></tr>
V</strong></td> Services: IT, engineering, consulting, advertising, audit</td> 15.5%</td> 30.5%</td></tr> </tbody></table>
These are the nominal rates for each band; the effective rate a company actually pays is lower, because each bracket carries a fixed amount to deduct.</p>
The Fator R</a></h2>
Some services can fall under Annex III or Annex V, and the Fator R decides which. It is the payroll of the last 12 months — including pro-labore and charges — divided by the revenue over the same period. If that ratio is 28% or more, the company is taxed under Annex III, which starts at 6%; below 28%, it falls under Annex V, which starts at 15.5%. For service companies, the payroll level is therefore a real lever on the tax bill, and one an accountant reviews month to month.</p>
Frequently asked questions</a></h2>
What is the Simples Nacional?</strong> A simplified tax regime for micro and small companies (ME and EPP) that bundles eight federal, state and municipal taxes into one monthly payment, the DAS, with revenue capped at R$ 4.8 million a year.</p>
Who can opt for the Simples Nacional?</strong> An ME or an EPP within the R$ 4.8 million ceiling whose activity and ownership are not barred from the regime. New companies choose it during registration; running companies opt in at the start of the year.</p>
How much tax does the Simples Nacional charge?</strong> It depends on the activity and the revenue. Rates start at 4% for commerce, 4.5% for industry and 6% for most services, and rise with revenue up to about 33% in the highest service brackets — all paid in the single DAS slip.</p>
What is the Fator R?</strong> The ratio of payroll to revenue over 12 months. At 28% or more, a service company is taxed under Annex III (from 6%) instead of Annex V (from 15.5%), so it lowers the rate for payroll-heavy service businesses.</p>

Annex</th>	Activity</th>	Starting rate</th>	Top rate</th></tr></thead>
I</strong></td>	Commerce (shops, resale)</td>	4.0%</td>	19.0%</td></tr>
II</strong></td>	Industry (manufacturing)</td>	4.5%</td>	30.0%</td></tr>
III</strong></td>	Services: installation, repair, travel agencies, training</td>	6.0%</td>	33.0%</td></tr>
IV</strong></td>	Services: cleaning, security, construction, legal</td>	4.5%</td>	33.0%</td></tr>
V</strong></td>	Services: IT, engineering, consulting, advertising, audit</td>	15.5%</td>	30.5%</td></tr> </tbody></table> These are the nominal rates for each band; the effective rate a company actually pays is lower, because each bracket carries a fixed amount to deduct.</p> The Fator R</a></h2> Some services can fall under Annex III or Annex V, and the Fator R decides which. It is the payroll of the last 12 months — including pro-labore and charges — divided by the revenue over the same period. If that ratio is 28% or more, the company is taxed under Annex III, which starts at 6%; below 28%, it falls under Annex V, which starts at 15.5%. For service companies, the payroll level is therefore a real lever on the tax bill, and one an accountant reviews month to month.</p> Frequently asked questions</a></h2> What is the Simples Nacional?</strong> A simplified tax regime for micro and small companies (ME and EPP) that bundles eight federal, state and municipal taxes into one monthly payment, the DAS, with revenue capped at R$ 4.8 million a year.</p> Who can opt for the Simples Nacional?</strong> An ME or an EPP within the R$ 4.8 million ceiling whose activity and ownership are not barred from the regime. New companies choose it during registration; running companies opt in at the start of the year.</p> How much tax does the Simples Nacional charge?</strong> It depends on the activity and the revenue. Rates start at 4% for commerce, 4.5% for industry and 6% for most services, and rise with revenue up to about 33% in the highest service brackets — all paid in the single DAS slip.</p> What is the Fator R?</strong> The ratio of payroll to revenue over 12 months. At 28% or more, a service company is taxed under Annex III (from 6%) instead of Annex V (from 15.5%), so it lowers the rate for payroll-heavy service businesses.</p>

Guide for Companies

Simples Nacional Explained: Rates and Who Can Opt In