84 Dialog Semiconductor Plc | Annual report and accounts 2012  |  Section 4 | Consolidated financial statements and notes Notes to the consolidated financial statements For the year ended 31 December 2012  A reconciliation of income taxes determined using the combined German income tax rate of 28.4% (2011: 28.4%), is as follows:  Deferred income tax assets and liabilities are summarised as follows:  [1] Impaired in FY 2005. In 2012 an impairment of US$nil (2011: US$2,079,000) was reversed  5. Income taxes continued  2012  US$000  2011 US$000 Expected income tax expense  (24,439) (17,429) Tax rate differential  (568) (21) Non-deductible portion of share based payments  (1,782) (1,668) Tax benefit from share based payments  3,434  2,964 Tax free income (non-deductible expenses)  (291) (1,035) Recognised deferred tax assets relating to a reversal of a previous write-down of deferred tax assets and first time  recognition of deferred tax assets relating to prior years 2,132  14,607 Benefit from previously unrecognised deferred tax assets that is used to reduce current tax expense  1,631  1,295 Additional losses for which no deferred tax asset is recognised  (2,543) (3,362) Adjustments recognised for tax of prior periods  (388) 144 Differences arising from differences between functional currency and tax currency  (773) 462 Other  (25) (27) Actual income tax expense  (23,612) (4,070) At 31 December 2012  US$000  At 31 December 2011 US$000 Temporary differences relating to intangible assets  (5,111) (3,432) Other temporary differences  2,178  (3,075) Deferred taxes in relation to tax credits  –  1,105 Net operating loss carryforwards 6,167  20,453 Total net deferred tax assets  3,234  15,051 Impaired deferred tax assets$^{1)}$  –  (1,105) Recognised net deferred tax assets  3,234  13,946