Dividends and interest on capital

Dividends Analyze

Brazilian corporate law and our by-laws require that we annually distribute to our shareholders a mandatory distribution equal to 25% of our net income for the prior year (calculated under Brazilian GAAP), which may be adjusted in certain circumstances as permitted by Brazilian corporate law. See “Description of Our Capital Stock—Dividend Policy”. The mandatory distribution may be made in the form of dividends or interest attributable to shareholders’ equity. Interest attributable to shareholders’ equity may be deducted by us as an expense in calculating our income and social contribution tax obligations. We may pay or credit interest rates as own capital remuneration calculated on the shareholders’ equity accounts, observing the rate and limits set forth in the relevant fiscal legislation. The amount paid to shareholders as interest on own capital is deducted from the mandatory distribution amount. Dividends or interest attributable to shareholders’ equity are declared at the annual shareholders’ meeting, which is required by Brazilian corporate law and our by-laws to be held by April 30 of each year. When we declare dividends or interest attributable to shareholders’ equity, we are generally required to pay them within 60 days of declaring them unless the shareholders’ resolution establishes another payment date.

The following table shows the dividends and interest on the capital stock of the shareholders holding the Company’s common shares:

Last update: 09/26/2022