With the 2019 Tax Report, Petrobras reaffirms its commitment to transparency by disclosing the details of the reports related to taxes and government participation paid in Brazil. 

Petrobras is committed to compliance and strictly follows applicable tax laws in all locations where it operates. In addition, it contributes significantly to the collection of taxes and government take in all government levels. 

Tax collection made by Petrobras, as shown in this report, cover two types of taxes:(i) own taxes, that is, those calculated and paid by the Company itself or taxes due by the Company but withheld by third parties; (ii) taxes calculated by the Company but due to sales in subsequent operations executed by third parties, a situation in which Petrobras is assigned the status of tax substitute, as well as third -party taxes withheld from supplier contracts. 

Tax substitution is a collection technique widely used by federal, state and municipal entities, who use it to ensure the collection of taxes in the operations of the following chains, and Petrobras, as a relevant player in the market, plays this role by a legal designation. 

In this report, we break down the information included in our Annual Report Form 20-F, providing additional clarifications regarding the R$ 246.0 billion in taxes and government take contributed by Petrobras S.A. in 2019. However, it is worth noting that this information is shown on a cash basis, instead of an accrual basis. 

“It is with great satisfaction that we release our tax report for the first time, showing our important contribution to Brazilian society, in the form of payment of taxes, government take and in the auctions of new exploration and production areas of oil and natural gas”. Andrea Marques de Almeida, CFO “Petrobras is the largest taxpayer in the country, by far. 

If Petrobras is managed responsibly, it contributes to society as this amount will finance education, investment in basic sanitation, public security, health and all the services that the State must provide”. Roberto Castello Branco (photo), CEO of Petrobras.