Simples Nacional calculator: effective rate, DAS and Factor R

What the Simples Nacional is

The Simples Nacional is Brazil's simplified tax regime for small companies, set out in Lei Complementar 123/2006. Several federal, state and municipal taxes are paid together in one monthly slip, the DAS. It is the usual next step for a business that outgrows the MEI (individual micro-entrepreneur) status.

1. Last-12-months revenue (RBT12) sets the band

The rate is not flat. It depends on the RBT12, the gross revenue of the 12 months before the month being assessed. Each annex has six bands, with ceilings of R$180,000.00, R$360,000.00, R$720,000.00, R$1,800,000.00, R$3,600,000.00 and R$4,800,000.00, and each band has a nominal rate and a deduction amount.

2. Effective rate (art. 18 §1-A)

effective rate = (RBT12 × nominal rate − deduction) ÷ RBT12

The estimated DAS is this month's revenue × effective rate, rounded to the cent. Thanks to the deduction, a company that has just crossed into a higher band pays only slightly more, not the full nominal rate.

3. Which annex applies

• Annex I: retail and wholesale trade (reselling goods).
• Annex II: manufacturing.
• Annexes III and V: services. Some always fall under III; many intellectual and technical services depend on Factor R.
• Annex IV: services such as cleaning, construction and legal work. The employer's INSS (social security) contribution, the CPP (20% of payroll), is paid separately, outside the DAS, and is not included in the result.

The exact classification depends on the registered activity code (CNAE) and the wording of LC 123; ask an accountant if unsure.

4. Factor R: Annex III or V

For services subject to Factor R (art. 18 §§ 5-J, 5-K and 5-M), divide the last 12 months' payroll by the RBT12. At 28% or more the company is taxed under Annex III; below that, under the much costlier Annex V. Payroll covers salaries, pró-labore (the partners' monthly remuneration) and FGTS (the severance fund deposit), as defined in LC 123.

5. Thresholds and simplifications

Above an RBT12 of R$3,600,000.00 (the sub-limit), ICMS and ISS (state and municipal taxes) are paid outside the DAS, so the figure becomes a reference only. Above R$4,800,000.00 the company leaves the regime. The calculator flags both cases. It does not:

• pro-rate revenue for a business in its first months (LC 123 art. 18 §2); without an RBT12 it applies the first band;
• separate revenue with tax substitution, single-stage taxation, exports or withheld ISS;
• split the DAS among its component taxes.

Results are estimates; the official figure comes from the PGDAS-D return filed by the accountant. Still an MEI? Use the MEI DAS calculator. Weighing a job against your own company? Try the CLT vs PJ calculator, and for hiring, the employee cost calculator.

The example is a service company subject to Factor R with an RBT12 of R$480,000.00, R$40,000.00 of revenue this month and R$144,000.00 of payroll over the last 12 months. Factor R is 144,000 ÷ 480,000 = 30%, which clears the 28% bar, so Annex III applies. The RBT12 sits in the 3rd band: nominal rate 13.5%, deduction R$17,640.00. The effective rate is (480,000 × 13.5% − 17,640) ÷ 480,000 = 9.825%, giving an estimated DAS of R$3,930.00 for the month. Had payroll been under 28% of revenue, Annex V would apply at an effective 17.4375%, and the DAS would rise to R$6,975.00. The results also list the effective rate under every other annex for the same RBT12.