Updated on 29/06 at 17:28
The Ministry of Planning, Development and Management opened on Friday (29) additional credit worth R $ 32.7 billion for Petrobras, to adjust the company’s budget to the new customs regime, Repetro-Sped. The order was published in the Federal Official Gazette.
The ordinance also includes the Investment Budget (OI) of Banco da Amazônia, Companhia Docas do Espírito Santo (Codesa), Companhia Docas do Estado de São Paulo (Codesp) and Management Company of Marine Projects (Emgepron).
The Budget Guidelines Act provides that the acquisition of fixed assets must be part of the company’s IO. In this sense, according to the ministry, the ordinance aims to adjust this budget of Petrobras to the new needs of the company, adjusting the allocation previously provided in the Annual Budget Law (LOA) 2018.
According to the ministry, the authorization of the supplementary credit is in accordance with LOA, which allows budgetary adjustments in investments of the Growth Acceleration Program (PAC) by ordinance of the Minister of Planning, Development and Management, provided that the company has operating revenues for financing them.
The reallocation of funds authorized by the Ordinance does not imply the release of resources from the National Treasury to Petrobras, does not impact the spending ceiling or the fiscal result of the federal state-owned companies, since there will be no additional capital formation with Treasury resources or external financial movement to the Petrobras group. All the resources used in the operation are Petrobras’ own, and the budget credits are required to comply with the Repetro-Sped legislation.
Repetro-Sped is the special customs regime for economic use destined to goods to be used in the exploration, development and production of oil and natural gas, under the computerized control of the Public Digital Book Keeping System (SPED).
The new regime, established by Law 13,586 of 2017, is part of a set of federal government measures that change the regulatory framework of the oil and gas sector. According to the ministry, Repetro-Sped equates Brazilian tax treatment with that of other countries, paying off investments and promoting a safer business environment, with rules and conditions of competitiveness adhering to the international market.
The main change promoted by the law was the distinction between goods according to their nature: temporary, those that would be used for short periods, compared to their useful life; or permanent, that would be used during most of its useful life.
For the permanent assets, the new tax regulatory framework of the oil sector conditioned the disbursement of federal taxes on the incorporation of the investments into the company’s equity. The new scheme revoked the need for the assets to belong to the foreign company, in this case Petrobras Netherlands BV
In this context, in order to benefit from the tax benefits of the new special customs regime, Petrobras will nationalize an expressive set of goods through purchase and sale operations.
The Ministry of Planning also points out that without Repetro-Sped, the acquisition of machinery and equipment in the oil and gas sector would suffer a tax burden of approximately 50%, reducing the agents’ investment capacity and consequently the economic viability of the projects , characterized by high-risk and long-term investments, whose financial contributions are realized many years before the beginning of production.