Petrobras/Favorable decision by CARF concerning the deductibility of production development expenditures for purposes of IRPJ and CSLL assessment

Rio de Janeiro, August 16, 2018 – Petróleo Brasileiro S.A. – Petrobras informs that today the Administrative Board of Tax Appeals (CARF) issued a decision, unanimously, in favor of the company, in an fiscal administrative proceeding in the amount of R$ 8.4 billion, related to the moment of deductibility of expenses incurred by Petrobras in the development of oil and gas production, for purposes of calculating Corporate Income Tax (IRPJ) and Social Contribution on Net Profit (CSLL), of the 2011 fiscal year.

The CARF had already rendered favorable decision, unanimously, in proceedings pertaining to the same matter regarding a previous fiscal year, as disclosed to the market on 10/19/2017.

It should be noted that the possibility of loss of the contingent liability is currently classified as remote and, therefore, this proceeding is not disclosed in the notes to the financial statements for the second quarter of 2018, with no impact on the company’s financial results.

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