Brazilian government launches Prospera MEI to debt forgive microentrepreneurs
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The Brazilian government launched the Prospera MEI program to support individual microentrepreneurs in the state of Pernambuco.
This initiative targets nearly 390,000 workers in the region by forgiving debts owed to the Union and providing financial incentives. The program aims to stimulate the economy by clearing the names of small business owners who have fallen into debt. The federal government will automatically forgive debts recorded by October 13, 2026, starting January 1, 2027.
To keep this forgiveness, microentrepreneurs must pay their first six monthly tax documents of 2027 on time. The government also suggests that those in legal disputes over these debts drop their lawsuits to receive the waiver without paying legal fees. Additionally, the program offers a Pix MEI incentive of up to R$ 5,000 for business investments, with a cap of one million beneficiaries until 2030.
New rules will also expand the gross annual revenue limit for individual microentrepreneurs from R$ 81,000 to R$ 110,000 in 2027 and R$ 140,000 in 2028. These changes allow businesses to grow without leaving the simplified tax regime. Furthermore, the program allows these entrepreneurs to hire up to two employees instead of one. It also increases the ceiling for public procurement contracts, allowing government bodies to hire these small businesses for services costing up to R$ 32,700.
