Petrobras – CARF decision related to remittances abroad for chartering of vessels

Rio de Janeiro, November 27, 2018 – Petróleo Brasileiro S.A. – Petrobras reports that today the Administrative Board of Tax Appeals (CARF) issued a decision against the company in administrative tax proceedings on a total estimated amount of R$ 7 billion, arising from tax assessments drawn up by the Federal Revenue Service for the collection of CIDE (base year 2012) and PIS/COFINS-import (base year 2010) on remittances abroad for the payment of chartering of vessels.

The decision is subject to appeal to the Upper Chamber and the company will take appropriate actions to protect its interests and its investors.

Yesterday, CARF also started a trial on administrative tax proceedings on the same subject for the collection of CIDE (base year 2011), PIS/COFINS-import (base year 2011) and PIS/COFINS-import (base year 2012) in the estimated amount of R$ 12 billion, where the case rapporteur voted for Petrobras in order to cancel the charges. Voting is expected to resume in January 2019.

Information regarding these proceedings is presented in the financial statements (ITR) for the 3rd quarter of 2018, through explanatory note 28.3. Contingent liabilities – tax proceedings. The two events mentioned above do not change the company’s expectation of loss, and the proceedings remain as contingent liabilities.

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