aracruz2000

The social contribution rate will continue to be 9

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Unformatted text preview: ate continues to be 8% in accordance with the provisions of SFAS 109. Therefore, this rate was used to calculate deferred taxes at December 31, 2000 and 1999. 19 Aracruz Celulose S.A. Notes to Consolidated Financial Statements Expressed in thousands of United States dollars (unless otherwise stated) The amounts reported as income tax expense (benefit) in the consolidated statements of income are reconciled to the statutory rates as follows: Year ended December 31, 1998 Income (loss) before income taxes and minority interest Federal income tax and social contribution at statutory rates Adjustments to derive effective tax rate: Effects of differences in remeasurement from reais to U.S. dollars, using historical exchange rates and indexing for tax purposes: Translation effect for the period Depreciation on difference in asset basis Valuation allowance (reversal) Operations in Brazil Operations outside Brazil Effects of changes in tax rates for 1999 Social contribution recovered, net of federal income tax effect of U.S.$ 2,601 (see Note 16 (a) (iv)) Other permanent items 1999 2000 (22,116 ) 107,389 283,765 (7,298 ) 39,734 93,642 (5,716 ) 1,074 (14,797 ) 29,025 (4,688 ) 22,406 (4,168 ) (4,389 ) (38,924 ) 2,617 (1,116 ) (5,394 ) (29,737 ) 20 140 5,836 (25,...
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