Income taxes in Brazil include federal income taxes and social contribution on net profits.

	12/31/2009	12/31/2008
Current income tax expenses	(111,561)	(81,215)
Deferred income tax on:
Temporary differences	203,834	(751)
Tax losses and negative tax basis of social contribution	(30,986)	(1,398)
Goodwill	(29,489)	(76,157)
Property, equipment and intangible	16,091	13,204
Other	(854)	(439)
Total deferred tax income	158,596	(65,541)
Total income tax benefit (expenses)	47,035	(146,756)

The statutory rates applicable for federal income taxes and social contribution are 25% and 9%, respectively, which represent an aggregate rate of 34%, for 2009 and 2008. The amounts reported as income tax expense in the consolidated statements of comprehensive income are reconciled to the statutory rates as follows:

	2009	2008
Profit before income taxes and social contribution	688,913	167,010
Income taxes and social contribution at the nominal rate of 34%
	(234,230)	(56,783)
(Additions)/exclusions:
Income taxes and social contribution on permanently nondeductible expenses	(9,297)	(21,472)
Reduction in non deductible provisions	(8,666)	(28,655)
Expenses and income taxed on a cash basis	-	2,356
Amortization of goodwill	36,777	(26,463)
Other reconciling items:
Recognition of deferred income taxes and social contribution on tax losses and negative    base from prior years	872	5,479
Unrecorded current year tax losses	(46,931)	(87,214)
Offsetting of tax losses and negative basis for social contribution taxes, for which deferred    tax asset was not recognized in previous years	47,352	24,326
Recognition of deferred income taxes and social contribution on temporary differences,    including temporary differences originating from previous years	256,959	40,663
Other	4,199	1,007
Income taxes and social contribution for the period	47,035	(146,756)
Effective rate	6.83%	(87.87%)

Brazilian tax law allows tax losses to be carried forward indefinitely to be utilized to offset future taxable income.
Tax legislation enacted in 1995 limits the utilization of tax loss carry forwards in a given year to 30% of taxable income.

Deferred tax assets are recognized on tax losses and negative calculation bases for the social contribution taxes are supported by projections of taxable income based on technical feasibility studies. These studies consider the history of profitability of the Company and its subsidiaries and the prospect of maintaining current profitability in the future as the basis for estimated recovery of credits within a period of not more than ten years. The remaining deferred tax assets, which are based on temporary differences, mainly tax contingencies and provisions for losses, were recognized based on expectations for their realization.