At december 31 2000 the companys investment in

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Unformatted text preview: nning of the period the Company believes it will benefit from its investment. For the year ended December 31, 2000, the Company recognized equity earnings of U.S.$ 1,313. 18 Aracruz Celulose S.A. Notes to Consolidated Financial Statements Expressed in thousands of United States dollars (unless otherwise stated) 5 Income taxes Income taxes in Brazil comprise federal income tax and social contribution (which is an additional federal income tax). The statutory rates applicable for federal income tax and social contribution are presented as follows: 1998 Federal income tax rate Social contribution (*) Composite tax rate 25.0 8.0 33.0 Year ended December 31 - % 1999 2000 25.0 8.0 to 12.0 33.0 to 37.0 25.0 9.0 to 12.0 34.0 to 37.0 (*) Pursuant to a provisional measure, the social contribution rate was increased to 12% for the period May 1, 1999 to January 31, 2000 and was reduced to 9% for the period February 1, 2000 to December 31, 2000. The social contribution rate will continue to be 9% until December 31, 2002 and will be reduced to 8% again effective January 1, 2003. Because provisional measures are valid only for 30 days unless approved by the Congress, the enacted r...
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This note was uploaded on 02/05/2014 for the course ECON 101 taught by Professor Gottlieb during the Spring '08 term at Rutgers.

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