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Thursday, Sep 26
Petrobras sees Dutch tax benefits for African operations
- Petrobras (PBR -0.3%) is busy relocating staff ranging from geophysicists to financial administrators to offices in the Netherlands to handle its African operations with an eye toward reducing taxes and costs, Bloomberg reports.
- In the Netherlands, one of 30 countries with which Brazil has double-taxation agreements, PBR would pay a 25% tax rate vs. 35% in Brazil and 40% in the U.S., an advantage that can be applied to African operations that last year posted EBITDA of $1.96B.
- Building a Dutch corporate presence comes as Brazil’s biggest exporters including iron ore miner Vale (VALE) fight government attempts to tax profits of their foreign subsidiaries.