Simples Nacional Under the Tax Reform: What Happens to Your Regime and Tax Credit
Simples Nacional under the tax reform: how the simplified regime interacts with CBS/IBS and which companies receive credits.
Executive Summary: Simples Nacional (simplified tax regime) is the tax regime used by more than 5 million companies in Brazil. With the Tax Reform (LC 214/2025), one question arises: does Simples disappear? Will companies in the simplified regime be entitled to tax credits under the new system? Vivian Sampaio explains in practical terms.
What Simples Nacional Is
Simples Nacional is a shared taxation regime created to simplify life for micro and small businesses. Instead of paying PIS, COFINS, ICMS, ISS, CSLL and IRPJ separately, the company pays a single contribution (the DAS) calculated on gross revenue, with rates that vary according to the activity and revenue bracket.
For a neighborhood shop, for example, the rate can range from 4% to 16% of revenue, depending on the sector. The system can also generate ICMS credits in specific situations.
With the reform, Simples Nacional begins to coexist with the new CBS and IBS framework during the transition. The regime does not disappear right away, but the final integration rules still depend on supplementary regulation.
How Simples Interacts with CBS and IBS
CBS replaces PIS and COFINS, which are part of Simples Nacional. IBS replaces ICMS and ISS, also components of Simples. The big question is: in place of Simples, will the company pay CBS + IBS separately, or will there be a unified simplified mechanism that preserves the logic of the current DAS?
Following the logic of the transition, Simples companies are expected to remain in a simplified regime, but the exact form of coexistence with CBS and IBS will still be detailed in supplementary regulation.
Practical example: A boutique stationery store in Curitiba bills R$ 300,000 per year and is in Simples Nacional. During the transition, the company tends to remain in the simplified regime, but the components of the DAS may be adjusted to reflect the new tax structure. The final effective rate will depend on the rules published for the period.
Entitlement to Credits Under the New System
One of the major changes in CBS/IBS is the broadening of the crediting logic for those who buy inputs and goods for resale or use in production. Under the current Simples model, these credits are more limited, especially for commerce and retail.
With the reform, there may be broader access to credits in some operations, but the actual reach for Simples opters still depends on the regulation of the regime.
Practical example: A small wooden furniture factory buys R$ 100,000 in wood per year to manufacture furniture it sells for R$ 250,000. Under the current system, the ICMS paid on the wood purchase is “trapped” in Simples and not recovered. With the reform, if IBS credits are generated on the wood, the company can reduce the effective cost of the input.
The Future of Simples Nacional
The expectation is that Simples Nacional will undergo a deep restructuring. The options are:
- Transformation into a transitional regime: kept during the transition, with gradual phase-out.
- Incorporation into a simplified CBS/IBS: the Simples rates are recalculated based on the new contributions.
- Creation of a new simplified regime: a “Super Simples” that unifies CBS and IBS into fixed amounts for micro-enterprises.
The regulation is still under discussion, and Vivian Sampaio recommends that small business owners avoid structural decisions without a simulation based on the rules already published.
Example: A Simples Retail Store
Scenario: Maria has a small clothing store in São Paulo, classified under Simples Nacional, with revenue of R$ 180,000 per year. The store sells around R$ 15,000 per month and has a monthly cost of goods of approximately R$ 8,000.
During the transition, the store tends to remain in Simples, but the regime’s tax components may be adjusted. The effective burden will depend on how CBS and IBS are treated for retail within the final regulation.
To find out whether it is worth migrating to another regime or staying in Simples, it is essential to run a projection based on the new rules as soon as the detailed regulation is published.
Want to understand how the tax reform affects Simples Nacional and your tax credit? On /napratica, VMAHUB publishes practical guides for companies. For a personalized analysis of your case, talk to our team: [email protected]
Read also:
- MEI Under the Tax Reform
- Lucro Presumido Under the Tax Reform
- Individual vs. Incorporated Professional Under the Tax Reform
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