Simples Nacional vs Lucro Presumido for Services

Simples Nacional vs Lucro Presumido for services comes down to two numbers: Simples Nacional taxes a services company on a single monthly rate that starts at 6% under Anexo III or 15.5% under Anexo V, depending on the Fator R, and applies up to R$ 4.8 million in annual revenue. Lucro Presumido taxes a fixed presumed profit margin of 32% of revenue for services, for a combined federal burden of about 11.33% of revenue, and applies up to R$ 78 million in annual revenue. An accountant or an online accounting service usually runs both scenarios before the annual option window closes. For the broader registration process behind either regime, see Simples Nacional explained for foreign founders.

What is the difference between Simples Nacional and Lucro Presumido for a services company?

Simples Nacional applies a single monthly rate to gross revenue, starting at 6% under Anexo III or 15.5% under Anexo V, and is limited to companies with up to R$ 4.8 million in annual revenue. Lucro Presumido taxes a fixed presumed profit margin of 32% of revenue for services, applying IRPJ at 15% and CSLL at 9% on that presumed margin, plus PIS at 0.65% and COFINS at 3% on gross revenue under the cumulative regime, for a combined federal burden of about 11.33% of revenue. Lucro Presumido is available up to R$ 78 million in annual revenue.

When does Lucro Presumido cost less than Simples Nacional for a services business?

Lucro Presumido tends to cost less once a services company’s payroll is low relative to revenue and Simples Nacional keeps it under Anexo V, where the initial rate is 15.5%. Because Lucro Presumido’s combined federal burden is fixed at about 11.33% of revenue regardless of payroll, a company with high margins and few employees can pay less under Lucro Presumido than under Anexo V of Simples Nacional. An accountant or an online accounting service compares both regimes against the company’s actual payroll and revenue before each annual option window.

What is the Fator R and how does it affect Simples Nacional for services?

The Fator R divides a company’s payroll from the past 12 months by its gross revenue from the same period. When the result reaches 28% or more, a services company moves from Anexo V to Anexo III of Simples Nacional, lowering the initial rate from 15.5% to 6%. Payroll includes salaries, pro-labore with its INSS contribution, the 13th salary and vacation pay plus related charges. An accountant or an online accounting service recalculates the Fator R monthly, since it directly changes which anexo applies before the DAS is issued.

What is the annual revenue limit for each regime?

Simples Nacional is available to companies with up to R$ 4.8 million in annual gross revenue. Lucro Presumido is available up to R$ 78 million in annual gross revenue. A company that outgrows Lucro Presumido’s limit, or whose activity requires it by law, such as financial institutions, moves to Lucro Real, which taxes IRPJ at 15% and CSLL at 9% on actual accounting profit rather than a presumed margin.

Which regime is better for a small services company just starting out?

For a services company opening its CNPJ with modest revenue, Simples Nacional is usually the starting point because it consolidates several federal, state and municipal taxes into a single monthly payment and starts at 6% under Anexo III when payroll reaches 28% of revenue. As revenue grows and the Fator R falls below 28%, an accountant or an online accounting service typically re-evaluates whether Lucro Presumido brings the tax burden back down, since its federal cost stays fixed at about 11.33% of revenue independent of payroll. The registration steps that come before this choice are covered in Simples Nacional explained for foreign founders.

Can a company switch between Simples Nacional and Lucro Presumido?

Yes. Both are options exercised once a year, generally in January, and the choice made then applies for the full calendar year. A services company files the option through Receita Federal, and an accountant or an online accounting service compares the two regimes against the prior year’s payroll and revenue before the option window closes, since switching mid-year is not allowed.

What role does an accountant or online accounting service play in choosing between the two?

The choice depends on payroll, revenue and CNAE, since not every service activity is eligible for Simples Nacional’s Anexo III. An accountant or an online accounting service runs both scenarios, tracks the Fator R across the year to anticipate a change of anexo, and files the annual option with Receita Federal before the deadline, conducting the comparison instead of leaving it to a one-time estimate.