Petrobras Paid 246 Billion Reais in Taxes in Brazil in 2019

The largest taxpayer in Brazil, Petrobras – as emphasized by Roberto Castello Branco, the company’s president, released its fiscal report for 2019 last night (15). Petrobras: 357 Employees from Hibernated Fields Transferred to Refinery

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The state-owned company paid a total of R$ 246 billion in taxes in 2019, a growth of 34.91% in tax payments compared to 2018, when it paid R$ 182.4 billion.

The fiscal report includes the payment of all types of taxes and fees, including royalties, to the three branches of the executive power: Federal Government, States, and municipalities.

The Petrobras report showed that the state-owned company is the largest corporate taxpayer financing the Brazilian federal government.

Check Out Petrobras’s Statement

“Transparency and trust are fundamental values for society, and they must be guiding principles for the actions and communications of all companies. With the 2019 Fiscal Report, Petrobras reaffirms its commitment to transparency by providing detailed reports related to taxes and government participations paid in Brazil.” said the state-owned company.

Petrobras is committed to compliance and strictly adheres to applicable tax laws in all locations where it operates. In addition, it makes a significant contribution to tax revenue and government participations at all levels.

The collections made by Petrobras, as demonstrated in this report, cover two types of taxes: (i) taxes that are the responsibility of the company, meaning those calculated and collected by the company itself or owed by the company but withheld by third parties; (ii) taxes calculated by the company but owed due to sales made in subsequent operations conducted by third parties, where Petrobras is assigned the role of tax substitute, in addition to third-party taxes withheld in supplier contracts.

Tax substitution is a widely used collection technique by federal, state, and municipal entities, which use it to ensure the collection of taxes in subsequent chain operations, and Petrobras, as a relevant player in the market, fulfills this role under legal designation.

In this report, we detail information from our Annual Report Form 20-F, providing additional clarifications regarding the R$ 246 billion in taxes and government participations contributed by Petrobras S.A. in 2019. However, it is worth noting that this information is based on a cash basis, rather than an accrual basis.

“It is with great satisfaction that we disclose for the first time our tax report, showing our significant contribution to Brazilian society in the form of tax payments, government participations, and bids for new exploration and production areas for oil and natural gas.” Andrea Marques de Almeida, Financial Executive Director and Investor Relations

“Petrobras is the largest taxpayer in the country, by far. If Petrobras is run responsibly, it contributes to society, because this amount will finance education, investments in basic sanitation, public safety, health, all the ends that the state must fulfill.” Roberto Castello Branco, president of Petrobras