Brazilian crude oil export tax announced
Key points
- Brazilian Government imposes 12.0% tax on oil exports
- Tax expected to be deductible for corporate income tax purposes
- Tax to lapse after 120 days unless ratified by Brazilian Congress
Full summary
Karoon Energy Ltd has advised that the Brazilian Government has announced a 12.0% tax will be levied on oil exports (sales volumes) effective immediately on 12 March 2026 (Brazil time). The Brazilian Government has framed the tax as a form of windfall profit sharing in the current oil price environment. The tax is expected to be deductible for corporate income tax purposes. The tax will lapse after 120 days from the effective date, unless it is ratified by the Brazilian Congress.
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