Petrobras (PBR)

20 Tax incentives

At September 30, 2009, the balance of R$ 62.762 thousand (item 2.02.01.06.04 of the non-current liabilities – QTR - Petrobras) originates from the part of the reinvestment project approved by SUDENE, which is being allocated to the income statement for the year in the same proportion that the corresponding asset is depreciated.

20 Tax incentives

As of June 30, 2009, the balance of R$ 67.592 thousand originates from the part of the reinvestment project approved by SUDENE which is being allocated to the income statement for the year in the same proportion that the corresponding asset is depreciated.

21.2 Tax incentives

It includes an incentive for investments in the North East, within the ambit of the Superintendência de Desenvolvimento do Nordeste (SUDENE), with a 75% reduction in the income tax due, calculated on the working profits of activities with incentives, in the amount of R$ 514.857 thousand until March 31, 2009, which may only be used to offset losses or for a capital increase, as established in article 545 of the Income Tax Regulations.

b) Tax incentives

It includes an incentive for investments in the North East, within the ambit of the Superintendency for Development of the North East (SUDENE), with a 75% reduction in the income-tax due, calculated on the working profits of activities with incentives, in the amount of R$ 514.857 up till December 31, 2008, which may only be used to offset losses or for a capital increase, as established in article 545 of the Income Tax Regulations.

On May 10, 2007, the Brazilian Federal Revenue Department recognized Petrobras’ right to deduct this incentive from income taxes payable, covering the tax years from 2006 until 2015.

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The donations and subsidies for investment recorded in the accounting up to December 31, 2007 will be maintained until they have been totally used.