Values

106
Group Financial Statements
Notes
A reconciliation of expected net tax income/expense to actual
tax income/expense is shown in the following table:
Reconciliation of Expected Net Tax
in € millions 2009 2008
Net earnings before income taxes 270 335
Income tax rate applicable to Bertelsmann AG 30.00% 30.00%
Expected tax expense
The tax effects of the following items led to differences between
the expected and actual tax expense:
(81) (101)
Adjustment for differing national tax rates (18) 27
Effect of changes in tax rate and tax law (3) (5)
Non-tax-deductible impairments of goodwill (78) (137)
Tax-free disposal and merger gains 9 223
Current income taxes for previous years 28 42
Deferred income taxes for previous years (4) 24
Valuation allowance on deferred tax assets, current year (27) (54)
Permanent differences (43) (62)
Other adjustments (18) (22)
Total of adjustments (154) 36
Actual tax expense (235) (65)
Th e income tax rate applied at Bertelsmann AG consists of corporate
income tax, the solidarity surcharge and trade tax.
Effective Tax Rate
2009 2008
Corporation tax including solidarity surcharges 15.83% 15.83%
Trade tax 14.17% 14.17%
Effective income tax rate 30.00% 30.00%
Bertelsmann Annual Report 2009