Company: BBD
Filing Date: 2025-03-31
Form Type: 20-F
Source: 0001292814-25-001244
Chunk: 18

Company: BANK BRADESCO
Filing Date: 2025-03-31
Form: 20-F
Item: Item 10
Chunk 18
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recognition of revenues, costs and expenses, would have no tax effects.

In this sense, profits recorded
in line with the rules laid down by Law No. 11,638/07 ( IFRS Accounting StandardsProfits)
may be different for profits calculated following the accounting methods and criteria in force on December 31, 2007 (2007 Profits).

Although market practice
is for the distribution of dividends which are calculated using the IFRS Accounting StandardsProfits to be exempt from taxes, the Brazilian tax authorities, through Normative Instruction No. 1,397/13, understand that companies
should consider the 2007 Profits as the basis for determining the amount of profit exempt from taxes that could be distributed to the
beneficiaries.

Surplus paid on 2007 Profits
(Surplus Dividends) should, in the opinion of the tax authorities and in the specific case of non-resident beneficiaries in Brazil, be
subject to taxation as follows: (i) Withholding Income Tax at Source (IRRF) at a rate of 15.0% in the case of non-resident beneficiaries
in Brazil, but which were not domiciled in a tax haven (as described on the item 10. E.10.04 Tax haven (JTF) below); or (ii) IRRF at a
rate of 25.0% in the case of non-residents in Brazil, domiciled in the tax haven.

  210 – Form 20-F 2024 | Bradesco  

  Table of Contents  

As a way to mitigate that
issue, Law No. 12,973/14, in addition to revoking the RTT, made significant changes to federal tax law, including in relation to Excess
Dividends. Following the changes introduced by Law No. 12,973/14, it was confirmed that Excess Dividends would be exempt with respect
to profits made between 2008 and 2013. Since 2015, this discussion has no longer been relevant, as the differences relating to the previous
accounting treatment have become irrelevant. Potential discussions remain, however, with regard to dividends paid from profits ascertained
in the calendar year 2014, unless the company has voluntarily opted for the application of the provisions laid down in Law No. 12,973/14,
since January 1, 2014.

In November 2023, as noted
previously