Brazilian Support Policies Micro and Business Companies Small Size

the case of the simple

Abstract

This paper analyzes the Brazilian public policies in support of micro and small businesses (MPEís), in particular, the Integrated Payment System for Taxes and Contributions of Micro and Small Companies (SIMPLES), which had been instituted by the Government In 1996 (Law No. 9,317). SIMPLES reduces the tax burden and simplifies the declaration of micro and small companies. Brazilian legislation on the topic, the RAIS database and SRF information were analyzed. The results indicate the effective reduction of the tax burden and the effect on the growth of the number of firms and employees. The analysis also addresses the relationship between the spheres of Federal, State and Municipal Governments, and their implications for a greater impact of SIMPLES, when the adoption of local policies to foster micro and small companies, by states and municipalities.