REC Silicon Annual Report 2019

90 Notes to the financial statements, REC Silicon ASA REC Silicon Annual Report 2019 INCOME TAXES Recognized income tax expense (USD INTHOUSAND) 2019 2018 Current income tax benefit (+) / expense (-) for the year 0 0 Total deferred tax benefit (+) / expense (-) for the year 0 0 Total income tax benefit (+) / expense (-) for the year in the income statement 0 0 1) Changes in estimates related to prior years, see note Q for further information. Relationships of income tax expense/benfit to profit / loss before taxes (USD INTHOUSAND) 2019 2018 Profit/Loss before taxes -84,972 -335,988 Tax calculated at domestic tax rate of 22% (23% 2018) 18,694 77,277 Expenses not deductible for tax (permanent differences) -81 -89 Impairment loss (permanent differences) 1) -15,549 -90,135 Other permanent differences 2) -385 -7,409 Effects of not recognized deferred tax assets, including reversal of previous years -2,680 20,355 Current income tax benefit (+) / expense (-) for the year 0 0 Total income tax benefit (+) / expense (-) for the year in the income statement 0 0 Effective tax rate 0% 0% 1) Impairment of financial assets. 2) Other permanent differences consist of income and cost registered in USD financial statement, but not applicable for tax calculation, and income and cost registered in NOK Tax financial statement, but not applicable for the USD financial statement. Current income tax (USD INTHOUSAND) 2019 2018 Profit/Loss before taxes -84,972 -335,988 Impairment and losses on shares and loans - permanent differences 70,676 391,889 Expenses not deductible for tax (permanent differences) 367 387 Other permanent differnces 1) 1,750 32,213 Changes in temporary differences 3,446 -79,623 Basis for income tax before utilization (-) / increase (+) of tax losses carried forward -8,734 8,878 Utilization (-) / increase (+) of tax losses carried forward 8,734 -8,878 Basis for current tax in the income statement 0 0 Estimated 22 percent current income tax (23% in 2018) 0 0 Current income tax benefit (+) expense (-) for the year 0 0 Basis for current tax in the income statement 0 0 Cost for capital increase -497 0 Tax loss carried forward 497 0 Basis for current tax in balance sheet 0 0 Current tax asset (+) / liability (-) 0 0 1) Other permanent differences consist of income and cost registered in USD financial statement, but not applicable for tax calculation, and income and cost registered in NOK Tax financial statement, but not applicable for the USD financial statement. I