This excerpt taken from the PBR 6-K filed Nov 13, 2007.
6. Interest on Equity
On July 25, 2007 and September 21, 2007, the Companys Board of Directors approved an advanced payment to shareholders in the form of interest on equity, in the amount of R$ 2,194 million for each installment, pursuant to article 9 of Law 9.249/95 and Decrees 2.673/98 and 3.381/00.
The first installment will be available to shareholders until January 31, 2008 and the second until March 31, 2008, based on shareholders positions on August 17 and October 5, 2007, respectively, corresponding to R$ 0.50 per common and preferred share for each installment, and will be discounted from declared dividends on net income for the fiscal year of 2007. Said amount will be subject to monetary restatement in line with the variation in the Selic interest rate if paid before December 31, 2007, between the effective payment date and the end of the fiscal year in question. If paid in 2008, said amount will be subject to monetary restatement in line with the variation in the Selic interest rate between December 31, 2007, and the initial payment date.
This interest on equity is subject to withholding income tax of 15% (fifteen percent), except for shareholders who are exempt from said tax.