What is Simples Nacional?

Simples Nacional is a tax regime that offers a range of benefits for microenterprises and small businesses, facilitating tax payments and reducing bureaucracy. However, this regime has specific requirements, and the Federal Revenue Service conducts periodic audits to ensure that companies meet all conditions. If a company is excluded from Simples Nacional, it may lose these advantages and have to adapt to a new tax regime. In this context, reclassification becomes an alternative for those looking to return to this simplified regime.

What is Reclassification in Simples Nacional?

Reclassification in Simples Nacional is the process by which a company that was excluded or did not initially qualify attempts to resume or adapt to the tax regime, provided it meets all legal requirements. If your company was excluded or is at risk of being excluded due to pending issues, reclassification may be the key to continue enjoying the tax benefits of Simples Nacional.

Why can a company be excluded from Simples Nacional?

There are several reasons why a company may be excluded from Simples Nacional. Below, we highlight the main reasons:

1. Revenue Limit: For a company to remain in Simples Nacional, annual revenue may not exceed R$ 4.8 million. If this limit is exceeded, the company must be reclassified and may have to migrate to another tax regime.

2. Prohibited Activities: Companies that engage in activities not allowed in Simples Nacional, such as providing financial services, for example, may be excluded from the regime. Therefore, it is essential to stay alert to changes in tax laws and have a good accountant to maintain the correct classification.

3. Partnership with Legal Entities: Companies that have partners that are legal entities (PJ) cannot remain in Simples Nacional. If there are changes in the partnership structure and a PJ partner is added, the company will be excluded from the regime.

4. Debts with the Federal Revenue or INSS: Non-payment of federal taxes, such as the taxes of Simples Nacional, can result in exclusion from the regime. In this case, it is important to regularize the tax situation, including paying debts in installments to avoid losing the benefits of Simples.

What to do if excluded from Simples Nacional?

If your company is excluded from Simples Nacional, you will need to choose another tax regime, and Beorange can help decide which is most suitable. Exclusion implies an increase in the tax burden and more bureaucracy, as you will have to deal with various taxes and guides, instead of a single simplified payment.

How to Request Reclassification?

If your company has been excluded from Simples Nacional and you believe there was an error or that you have already regularized the pending issue, it may be possible to request reclassification. To do this, follow the steps below:

1. Verify the Exclusion: Before taking any action, it is essential to confirm the reason for the exclusion. You can consult the Federal Revenue Service to verify if your company was indeed excluded and what the reason was.

2. Regularize Pending Issues: If the exclusion occurred due to issues such as debts or non-compliance with the revenue limit, it is necessary to regularize these issues before making any request.

3. Request Reclassification: The company can request reclassification through the Term of Contestation, contesting the exclusion and presenting the necessary documents. Remember that the request will be analyzed by the Federal Revenue Service, and the process may take several months.

4. Monitoring and Deadlines: After filing the reclassification request, closely monitor the process. If your request is accepted, you may return to Simples Nacional, but if not, you will need to pay all retroactive taxes, including fines and interest.

How to Avoid Exclusion from Simples Nacional?

The best way to avoid exclusion from Simples Nacional is to maintain the company's compliance with the Federal Revenue Service. Keep a close eye on the following points:

• Revenue Control: Maintain strict control of revenue to ensure that it does not exceed the limit of Simples Nacional.

• Permitted Activities: Ensure that your company is within the permitted activities for the regime.

• Regularized Debts: Avoid exclusion due to debts with the Federal Revenue and INSS. Make payments or arrangements for debts to avoid surprises.

• Maintain the Partnership Structure: Stay alert to changes in the company's partnership structure, especially if there are new PJ partners.

Conclusion

Reclassification in Simples Nacional is a solution for companies that have been excluded for not complying with the rules of this tax regime. Although the reclassification process involves deadlines and requirements, it is possible to regain the benefits of Simples Nacional, which can be advantageous for the company's financial health. Therefore, it is essential for entrepreneurs to stay aware of the obligations of Simples and always seek to regularize pending issues on time, with the help of a specialized accountant.

If your company is facing difficulties in reclassification to Simples Nacional or if you have questions about the process, our team of specialists is ready to help. With years of experience in the field, we offer personalized accounting consulting to ensure that your company is always in compliance with tax requirements, avoiding unpleasant surprises.