By Brazil Stock Guide – Brazil’s state-controlled oil giant Petrobras (NYSE: PBR) paid 277.6 billion reais ($55 billion) in taxes and government participations in 2025, reinforcing its position as the country’s largest taxpayer.
The total represents roughly 7% of Brazil’s national tax revenue for the year and marked a 3% increase compared with 2024, highlighting the company’s central role in public finances.
On average, Petrobras transferred about 1.1 billion reais per business day to government coffers through federal, state and municipal taxes, as well as oil and gas royalties linked to exploration and production activities.
Chief Financial and Investor Relations Officer Fernando Melgarejo said the payments reflect the company’s contribution to the country’s economic development.
“We are proud to be Brazil’s largest taxpayer and, through tax payments, contribute to the country’s socioeconomic development, ensuring resources for public investment in areas such as health, education, infrastructure and security,” Melgarejo said.
“Over the past five years, the company has paid more than 1.3 trillion reais in taxes and government participations, distributed among the federal government, states, the Federal District and municipalities,” he added.
Federal government received the largest share
At the federal level, Petrobras accounted for about 6% of total tax collections, paying 161.9 billion reais to the central government in 2025.
Of that amount, 68.6 billion reais consisted of government participations, the financial compensation paid by oil companies for producing hydrocarbons in Brazil.
These payments were largely composed of royalties totaling 39.7 billion reais and special participation fees of 21.5 billion reais, which are tied to high-producing oil fields.
Strong contribution to state revenues
At the state level, Petrobras paid 113.8 billion reais in ICMS, Brazil’s value-added tax on goods and services.
The company’s contribution represented roughly 14% of total state tax revenue across Brazil’s 27 states, underlining the importance of the oil sector for regional public finances.
Municipal revenues
Municipal governments also benefited from Petrobras payments. In 2025, the company transferred 1.9 billion reais in taxes to 271 municipalities across 21 states and the Federal District.
The amounts include taxes generated directly by Petrobras operations as well as levies withheld from commercial transactions with suppliers and clients when the company acts as a tax substitute under Brazilian law.
Government participations paid by Petrobras are also partially redistributed to states and municipalities by the federal government, further expanding the fiscal impact of the company’s oil and gas production.