REC Silicon Annual Report 2019

65 Notes to the consolidated financial statements, REC Silicon Group REC Silicon Annual Report 2019 Accumulated income taxes recognized to equity at December 31 (USD INMILLION) 2019 2018 Effect of transition to IAS 39 at January 1, 2005 2.3 2.3 Effect of actuarial gains and losses -3.9 -2.1 Effect of conversion of convertible bonds -61.0 -61.0 Effect of costs for capital increase 8.6 8.5 Effect of translation differences on loans as part of net investment 12.6 12.6 Total deferred tax -41.4 -39.7 Current tax - effect of costs for capital increase 13.1 13.1 Total -28.3 -26.6 The following main deferred tax assets have not been recognized at December 31 (USD INMILLION) 2019 2018 Total non-current assets 37.8 26.0 Total current assets -0.2 -0.7 Total non-current liabilities 45.3 43.1 Total current liabilities 17.0 15.1 Tax losses carry forward 388.0 378.7 Total 487.8 462.2 Distribution of the deferred tax assets that have not been recognized at December 31 (USD INMILLION) 2019 2018 REC Silicon ASA (Norway) 69.6 67.5 REC Solar AS (Norway) 178.2 180.1 REC Silicon US operations 238.1 212.7 Other 1.9 1.9 Total 487.8 462.2 The deferred tax asset in the United States was generated due to net operating losses on a tax basis (most of which expire between 2032 and 2037), the accelerated reversal of book to tax differences for depreciation caused by the recognition of impairment (financial statement only), and other taxable temporary differences which are expected to reverse on a more definite schedule. Due to requirements in IAS 12 for convincing evidence of the available of future taxable income to offset prior tax losses, the deferred assets were derecognized in 2017. In Norway, net operating losses do not expire. The increase in deferred tax assets not recognized in REC Silicon ASA is primarily due to increase of tax loss carry forwards and interest limitation, that are primarily partly offset by increase in unrealized currency gains on intercompany USD loans held by the Company and translation differences caused by changes in currency rates. The decrease in REC Solar AS is primarily due to translation differences caused by changes in currency rates. Deferred tax assets have not been recognized due to requirements in IAS 12 for convincing evidence of available future taxable income to offset prior tax losses. Refer to note 31 contingent liabilities for discussion of notices of reassessment from the Central Tax office for large Enterprises. A 15 percent withholding tax would apply to any dividends paid from the USA (see notes 2.16 and 4.1(A)).