Simples Nacional is a simplified tax regime that collects various federal, state, and municipal taxes in a single guide (DAS). The tax rate is progressive and depends on the accumulated revenue over the last 12 months.
Unlike a fixed tax rate, the Simples Nacional tax is progressive. The government defines revenue brackets accumulated over the last 12 months (RBT12) and determines a nominal tax rate and a deductible installment. The formula to find the effective tax rate that will apply to the current month is:
Effective Tax Rate = ((RBT12 * Nominal Tax Rate) - Deductible Installment) / RBT12
The R Factor is a mechanism applied to certain service companies (such as system development, engineering, and medicine). It determines whether the company will pay tax under Annex III (initial tax rate of 6%) or Annex V (initial tax rate of 15.5%). If the payroll cost (including benefits) for the last 12 months represents 28.00% or more of the revenue for the same period, the company is classified under Annex III, resulting in significant tax savings.
The general revenue limit for companies under Simples Nacional (Epp) is $ 4.8 million per year. However, if the accumulated revenue exceeds $ 3.6 million, the ISS (municipal) and ICMS (state) taxes will be charged outside of the single DAS guide, in separate guides according to the common rules of the state and municipality.
Declaring under the wrong annex constitutes a tax infraction. If you declare services taxed under Annex V as being under Annex III, you will pay less tax than due, subjecting yourself to fiscal penalties, fines, and interest from the Federal Revenue Service.