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      • 3. Special items relating to acquisitions 
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Home Consolidated Financial Statements Notes Notes on the consolidated statement of income 11. Taxes

11. TAXES

INCOME TAXES

Earnings before income taxes and minority interest was attributable to the following geographic regions:

in million €	2008	2007
Germany	463	264
International	651	977
Total	1,114	1,241

Income tax expenses (benefits) for 2008 and 2007 consisted of the following:

in million €	Current taxes	Deferred taxes	Income taxes
2007
Germany	112	6	118
International	324	6	330
Total	436	12	448
2008
Germany	69	61	130
International	258	52	310
Total	327	113	440

In 2007, Fresenius SE was subject to German federal corporation income tax at a base rate of 25 % plus a solidarity surcharge of 5.5% on federal corporation taxes payable.

The German Business Tax Reform Act (Unternehmensteuerreformgesetz 2008) was enacted in the third quarter of 2007 resulting in a reduction of the corporate income tax rate from 25% to 15% (plus a solidarity surcharge of 5.5% on federal corporation taxes) for German companies. This reduction together with technical changes to trade tax rules has reduced Fresenius Group’s German entities’ combined corporate income tax rate effective as of January 1, 2008. Deferred tax assets and liabilities for German entities expected to be realized in 2008 and beyond were revalued in 2007 to reflect the changes in the enacted tax rate. The revaluation of deferred tax assets and liabilities resulted in deferred tax expenses of € 5 million which have been included in operations for the year 2007.

A reconciliation between the expected and actual income tax expense is shown below. The expected corporate income tax expense is computed by applying the German corporation tax rate (including the solidarity surcharge) and the effective trade tax rate on income before income taxes and minority interest. The respective combined tax rates were 29.00% for the fiscal year 2008 and 38.05% for the fiscal year 2007.