The company said in a security filing that it will include R$4.2 billion in tax liabilities as part of the Special Tax Regularization Program (PERT), which is a tax debt refinancing program. Under the terms of the program:
- 20 percent of the total gross amount will be paid in monthly installments until December 2017, totaling R$1.1 billion;
- R$1.6 billion, will be paid using tax credits; and
- R$1.5 billion will be settled in 145 consecutive monthly installments starting January 2018.
The company said installment amounts include an 80 percent reduction in default interest, 50 percent in default fines and 100 percent in legal charges which will result in R$1.1 billion in total savings.
The company’s third-quarter earnings release is scheduled for Nov. 13.
1 Brazilian real = 0.31 US