Simples Nacional and presumed profit: can they back sports?

A company under Simples Nacional (the simplified regime for small businesses) or lucro presumido (presumed profit regime) cannot deduct a sports donation or sponsorship from Imposto de Renda (income tax): Lei Complementar nº 222/2025, a Lei Complementar (complementary law), in art. 9, § 1, item I, reserves the benefit for companies taxed under lucro real (actual profit regime). That shatters a common expectation among small business owners. But there are real paths, and this article shows each one without promising what the law does not give. This is how companies in Brazil do it; readers abroad do not pay tax in Brazil, but the same alternatives show how anyone can help.

Why Simples is left out

Under Simples Nacional, a company pays all federal taxes, ICMS (state tax on goods and services) and ISS (municipal service tax) through a single slip, calculated on gross revenue. There is no separate calculation of IRPJ (corporate income tax) due to deduct from. LC 222/2025 was written for those who calculate IRPJ under lucro real, with an identifiable tax base and tax due.

The same applies to lucro presumido: IRPJ is calculated on a fixed percentage of revenue, and the law simply did not include that regime in art. 9. Sponsorship by a presumed profit company is an ordinary expense, with no effect on tax.

The honest summary: if your company is under one of these regimes, there is no federal sports incentive deduction. Full stop.

The PIE/SC case

The Santa Catarina program works differently: the company directs part of its ICMS due to an approved project and receives a crédito presumido (presumed tax credit). The bands are in Decreto nº 880/2025, art. 470, § 2, item VI, of Annex 6 of RICMS/SC (Santa Catarina’s ICMS regulations), and are set by annual gross revenue:

Annual gross revenue	Credit per period
From the small business ceiling up to 4 times the ceiling	15% of ICMS due
From 4 to 8 times the ceiling	10%
Above 8 times the ceiling	7%

The ceiling for an empresa de pequeno porte (small business), under LC 123/2006, art. 3, item II, is R$ 4.8 million in annual gross revenue. That is also the Simples Nacional limit. So the PIE bands start exactly where Simples ends. For revenue below R$ 4.8 million, the decree sets no percentage.

In practice: a Simples company has no band under PIE/SC (Santa Catarina’s Sports Incentive Program). A lucro presumido company with revenue between R$ 4.8 million and R$ 19.2 million that pays regular ICMS in Santa Catarina may fit into the 15% band. The decree talks about ICMS, not the income tax regime; but eligibility needs your accountant’s reading, because § 3 excludes ICMS under substituição tributária (tax substitution) and ICMS calculated with a substitute presumed credit. The details of the bands are in the PIE/SC limit by ICMS band.

What a small business can do

No deduction does not mean no options. Here is what exists:

1. The partner donates as an individual. Anyone who files the modelo completo (full itemized return) can allocate up to 7% of imposto devido (tax due) to projects approved under LC 222/2025 or to the children’s and elderly funds. Example: a partner with R$ 10,000 of tax due can allocate up to R$ 700. See how to donate income tax to sports.
2. Ordinary commercial sponsorship. The company pays, gets brand exposure and treats it as a marketing cost. There is no tax deduction, but there is an image return, especially in a small town, where the community sees who supports children’s sports.
3. Support in services or materials. Transport, snacks, uniforms, printing. It generates no deduction, but it solves real problems for a free project.
4. Mobilizing clients and suppliers that are under lucro real or above R$ 4.8 million in revenue and pay ICMS in Santa Catarina. A small company can be the bridge between the project and a large company.

Common mistakes

• Entering the donation as a deduction on the DAS (the Simples Nacional single payment slip). That field does not exist and the Receita Federal (federal tax authority) may issue a penalty.
• Trusting a promise of a “deduction” made by whoever is asking for sponsorship. Always ask: under which law, which article?
• Thinking presumed profit deducts 2%. Only lucro real deducts.
• Skipping the check of § 3 of Decreto nº 880/2025, which removes ICMS under tax substitution from the base.
• Confusing the revenue limit with monthly sales. The decree uses the annual gross revenue reported in the previous year’s DIME/EFD (the company’s state tax filings).

Muaythai in Balneário Camboriú and small businesses

Here is the usual notice: neither Projeto Campeões do Futuro (“Future Champions”) nor FECAMTT, the Santa Catarina Traditional Muaythai Federation, has a project approved to receive Imposto de Renda. FECAMTT’s Muaythai nas Escolas (“Muaythai in Schools”) project is approved under PIE/SC and receives ICMS from Santa Catarina companies above the Simples band.

Mestre Paulo Ribeiro’s Campeões do Futuro has existed for more than twenty years and teaches Taekwondo free of charge to children after school hours, with sites at state schools such as EEB João Goulart and in the São Judas neighborhood. A project like this lives on simple things: gloves, protective gear, transport to competitions, a snack after training. That is exactly the kind of support a Simples company can give without needing any law at all.

This is how companies in Brazil do it. If you live abroad, you do not pay tax in Brazil, but you can still support the project. If your company wants to help, see the Muaythai nas Escolas page and talk to the Mestre to find out what is missing today.

How to do it today

1. Confirm the company’s regime and annual gross revenue with your accountant.
2. If you are under Simples or below R$ 4.8 million, stop looking for a federal deduction: it does not exist for you.
3. Calculate 7% of the partners’ tax due: that is the family’s room for donations.
4. Decide whether a commercial sponsorship makes sense, with a contract and clear benefits in return.
5. If you know larger companies that pay ICMS in Santa Catarina, introduce PIE/SC to them.

This content is for information only and does not replace advice from your accountant. Rules may change: always check the wording currently in force.