CARF decision on taxes calculation related to income from foreign subsidiaries located outside Brazil

Rio de Janeiro, July 25, 2018 – Petróleo Brasileiro S.A. – Petrobras informs that the Brazilian Administrative Board of Tax Appeals (CARF) issued today a partially favorable decision in a fiscal administrative proceeding related to taxable income (IRPJ and CSLL) of the 2011 fiscal year in relation to the income from foreign subsidiaries located outside Brazil, in the approximate amount of R$ 3.3 billion. In the portion in with Petrobras was unsuccessful, the decision was defined by the casting vote of CARF’s President, since there was a tie in the judgment by the votes of other members.

Petrobras has not been formally notified about the content of the decision, which can be appealed. In the case that the decision in the administrative sphere is maintained, the company may still appeal to the Judiciary to defend its rights. Therefore, this does not represent a final decision.

The information pertaining to this matter is presented in the financial statements of the first quarter of 2018 (ITR), in explanatory note 28 (Provisions for legal proceedings– item 28.3 – Description of tax matters).

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