Simples Decision 2027 — a one-time window in the reform
The "Simples Decision 2027" is the choice that companies enrolled in Simples Nacional (Brazil’s simplified tax regime for small businesses) must make by September 2026: to remain in the simplified regime or migrate to the regular regime (Lucro Real or Lucro Presumido) when CBS/IBS take full effect in 2027. It is a one-time window, with no retroactivity — a definitive decision.
Why this decision is different
Under normal conditions, the choice of Simples Nacional is annual and renewable. But in 2026 a one-time event occurs:
- CBS takes full effect in 2027: CBS replaces PIS + COFINS + IPI; IBS enters its transition, replacing ICMS + ISS.
- Simples companies in the regular regime gain broad CBS/IBS credit, transferable to Lucro Real customers.
- Simples companies in the simplified regime continue to pay a single unified levy (DAS), but a Lucro Real customer CANNOT take CBS/IBS credit from a Simples supplier — a competitive disadvantage in B2B.
For B2B companies (selling to Lucro Real legal entities), opting into the regular regime may be vital to retain customers. For B2C companies (selling to final consumers), Simples typically remains advantageous.
Modeling the decision
A quantitative analysis by revenue line:
- B2B vs. B2C mix: if more than 30% of revenue is B2B, the regular regime tends to be advantageous.
- Operating margin: companies with a high margin under Lucro Presumido (above 32%) may benefit.
- Compliance capacity: the regular regime requires full accounting bookkeeping (ECD, ECF, SPED) — a compliance cost.
- Type of activity: regulated professional services (law, medicine, engineering) have specific rules within Simples (Annex III/V) — the modeling must take this into account.
The decision is formalized through an election filed with the Brazilian Federal Revenue Service by the deadline — with no possibility of reversal within calendar year 2027. See the Simples Decision 2027 cluster.
Frequently asked questions about the Simples Decision 2027
When exactly is the Simples Decision 2027 deadline?
The deadline is the last business day of September 2026 (aligned with the traditional Simples election calendar). After that date, companies that have not communicated a migration remain in Simples for 2027 — and lose the planned transition window.
Can a company that migrates to the regular regime return to Simples later?
Yes, but with restrictions. Re-electing Simples is only possible in January of a subsequent year (subject to cumulative requirements: revenue within the cap, permitted activity, no outstanding debts). There is no "mid-year change." This is why the 2026 decision carries special weight — it defines the regime for the whole of 2027.
Does the Simples Decision 2027 also apply to MEI?
For the individual micro-entrepreneur (MEI), there is a more stable dedicated regime (annual revenue up to BRL 81,000). MEI does not need to make a "decision" — it continues under the DAS-MEI regime. Migration to Simples Nacional as a micro-enterprise (ME) only occurs through involuntary disqualification (exceeding the cap) or a formal election. The reform affects MEI less directly.
What changes in Simples Nacional once the reform is fully in effect?
Simples continues to exist, but with a new mechanism for calculating its component taxes (CBS/IBS replacing PIS/COFINS/IPI/ICMS/ISS). The unified DAS remains. The critical difference is that Lucro Real customers of a Simples company CANNOT take CBS/IBS credit — unlike the regular regime, where the credit is broad. For B2B, this difference is decisive.