Company: PBR
Filing Date: 2025-09-03
Form Type: 424B2
Source: 0001104659-25-086714
Chunk: 77

Company: PETROBRAS - PETROLEO BRASILEIRO SA
Filing Date: 2025-09-03
Form: 424B2
Chunk 77
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 the Notes, the guarantor will be required to assume the obligation to pay such due amounts. As there is no specific legal provision
dealing with the imposition of withholding income tax on payments made by Brazilian sources to Non-Resident beneficiaries under guarantees
and no uniform decision from the Brazilian courts, there is a risk that tax authorities will take the position that the funds remitted
by the guarantor to the Non-Resident holders may be subject to the imposition of withholding income tax at a general 15% rate, or at a
25% rate, if the Non-Resident holder is located in a Low or Nil Tax Jurisdiction. Arguments exist to sustain that (a) payments made
under the guarantee structure should be subject to imposition of withholding income tax according to the nature of the guaranteed payment,
in which case only interest and fees should be subject to taxation at a rate of 15%, or 25%, in cases of beneficiaries located in Low
or Nil Tax Jurisdictions, as defined by the Brazilian legislation; or (b) payments made under guarantee by Brazilian sources to Non-Resident
beneficiaries should not be subject to the imposition of withholding income tax, to the extent that they should qualify as a credit transaction
by the Brazilian party to the borrower. As noted above, the imposition of withholding income tax under these circumstances has not been
settled by the Brazilian courts.

If the payments with respect
to the Notes are made by Petrobras as a guarantor, then Non-Resident holders will be indemnified so that, after payment of applicable
Brazilian taxes imposed by deductions or withholding with respect to principal or interest payable with respect to the Notes, subject
to certain exceptions, as mentioned in “Description of the Notes—Covenants—Additional Amounts,” a Non-Resident
holder will receive an amount equal to the amount that such Non-Resident holder would have received if no such taxes were imposed. See
“Description of the Notes—Covenants—Additional Amounts.”

Discussion on Low or Nil Tax Jurisdictions

On June 23, 2008, with effect as from January 1,
2009, Law No. 11,727 (“Law 11,727/08”) introduced the concept of “privileged tax regime” which
concept is broader than the concept of a Favorable Tax Jurisdiction. A “privileged tax regime” is a regime that
(1) does not tax income or taxes it at a maximum rate lower