Table:
|  | 2019 |  |
| --- | --- | --- |
|  | Gross amount | Tax effect |
| Deductible temporary differences | 20,642 | 4,842 |
| Credits 1) | 15,221 | 15,221 |
| Unrecognized deferred tax assets | 35,863 | 20,063 |
Paragraphs:
Unrecognized deferred tax assets
Deferred tax assets have not been recognized in respect of the following items, given the volatile nature of the semi-conductor equipment industry. Therefore it is not probable that future taxable profit will be available to offset deductible temporary differences.
1 These credits regards R&D credits generated in the US, in the state of Arizona. However, ASMI does not recognize these credits stemming from prior years due to the fact that utilization of prior year credits is only possibly if and when the credits generated in the current year are fully utilized. Given the level of R&D activity in the US, the company does not expect it could fully utilize the credits generated in the current year and, hence, does not expect to benefit from the available credits generated in prior years.
Question:
What is the tax effect of Deductible temporary differences expressed as a ratio of gross Deductible temporary differences?
Answer: 4842/20642 = 0.23