(Petrobras, 18.Dec.2019) — Petrobras, under the scope of its ongoing contingency assessment process, decided to join the Programs for Partial Tax Remission and Interest and Fine Reduction on VAT (ICMS) Debt established by the states of Amazonas, Alagoas, Bahia, Pernambuco, Rio Grande do Sul and Sergipe.
The tax debts included are mainly related to the appropriation of VAT tax credit on the acquisition of goods (products in general), and the application of VAT tax base with respect to interstate sales of natural gas.
The inclusion of these debts in the programs, whose updated value is R$ 3.6 billion, will allow the company to save around 70% through the disbursement of about R$ 1 billion, impacting the results of the fourth quarter of 2019.
Information regarding this contingency is shown in the financial statements of the fourth quarter 2018, in note 31.3. Contingent liabilities.
The decision to join the programs was based on the search to mitigate the risks associated with tax liabilities. ***
