Telefônica Brasil declares R$450 million interest on capital

Telefônica Brasil S.A. has announced a significant decision that will impact its shareholders. The company declared a gross amount of R$450 million in interest on capital (IoC) during a Board of Directors meeting held on October 14, 2026. This move is expected to enhance shareholder value and reflects the company's commitment to returning profits to its investors.

The interest on capital will be subject to a withholding income tax of 17.5%, resulting in a net amount of R$371.25 million available for distribution. The amount per share is set at R$0.14081834570, with shareholders eligible for this payment based on their positions as of October 26, 2026. Payments are expected to be made by April 30, 2027.

Background

Telefônica Brasil S.A. operates in the telephone communications sector, classified under the SIC code 4813. The company is publicly traded on the New York Stock Exchange under the ticker symbol VIV. As a large accelerated filer, Telefônica Brasil has been active in the market, with recent filings including several 6-K forms in October 2026, which highlight its ongoing activities and commitments to shareholders.

What the Filing Says

The filing states, "The Board of Directors approved the declaration of Interest on Capital in the gross amount of R$450,000,000.00, withholding income tax at the rate of 17.5%, resulting in a net amount of R$371,250,000.00." It further details that the IoC will be considered part of the mandatory dividends for the fiscal year ending December 31, 2026, pending approval at the Ordinary General Shareholders’ Meeting in 2027.

Impact

This declaration of interest on capital will directly benefit shareholders of Telefônica Brasil, encouraging continued investment in the company. It also positions Telefônica Brasil favorably against its competitors in the telecommunications industry, as companies increasingly focus on delivering shareholder returns. The decision reflects a broader trend among telecommunications firms to enhance shareholder value through similar financial strategies.

What's Next

The filing does not specify what happens next beyond the payment schedule. However, it does indicate that adjustments to the amount per share may occur depending on any share repurchases made under the company’s ongoing Share Buyback Program. If no repurchases occur, the information provided will remain valid without further notice.