Incredimail 2011 Annual Report Download - page 80

The rules applicable to owning shares of a passive foreign investment company are complex, and each prospective purchaser who would be a U.S. Holder
should consult with its own tax advisor regarding the consequences of investing in a passive foreign investment company.
Information Reporting and Back-up Withholding
Holders generally will be subject to information reporting requirements with respect to dividends paid in the United States on ordinary shares. In addition,
Holders will be subject to back-
up withholding tax on dividends paid in the United States on ordinary shares unless the holder provides an IRS certification or
otherwise establishes an exemption. Holders will be subject to information reporting and back-
up withholding tax on proceeds paid within the United States from the
disposition of ordinary shares unless the holder provides an IRS certification or otherwise establishes an exemption. Information reporting and back-
up withholding
may also apply to dividends and proceeds paid outside the United States that are paid by certain "U.S. payors" or "U.S. middlemen," as defined in the applicable
Treasury regulations, including:
The back-up withholding tax rate is 28%. Back-up withholding and information reporting will not apply to payments made to Non-
U. S. Holders if they have
provided the required certification that they are not United States persons.
In the case of payments by a payor or middleman to a foreign simple trust, foreign grantor trust or foreign partnership, other than payments to a holder that
qualifies as a withholding foreign trust or a withholding foreign partnership within the meaning of the Treasury regulations and payments that are effectively
connected with the conduct of a trade or business in the United States, the beneficiaries of the foreign simple trust, the person treated as the owner of the foreign
grantor trust or the partners of the foreign partnership will be required to provide the certification discussed above in order to establish an exemption from backup
withholding tax and information reporting requirements.
The amount of any back-up withholding may be allowed as a credit against a U.S. Holder’
s U.S. federal income tax liability and may entitle the holder to a
refund, provided that required information is furnished to the IRS.
F. DIVIDENDS AND PAYING AGENTS
Not applicable.
G. STATEMENT BY EXPERTS
Not applicable.
H. DOCUMENTS ON DISPLAY
You may request a copy of our U.S. SEC filings, at no cost, by writing or calling us at Perion Network Ltd., 4 HaNechoshet Street, Tel-
Aviv 69710,
Israel, Attention: Yacov Kaufman, Telephone: +972-3-
7696100. A copy of each report submitted in accordance with applicable United States law is available for
public review at our principal executive offices. In addition, our filings with the SEC may be inspected without charge at the SEC’
s Public Reference Room at 100 F
Street, N.E., Washington, D.C. 20549. Information on the operation of the Public Reference Room can be obtained by calling the SEC at 1-800-SEC-
0330. Our SEC
filings are also available to the public from the SEC’s website at www.sec.gov.
(1)
a U.S. person;
(2)
the government of the U.S. or the government of any state or political subdivision of any state (or any agency or instrumentality of any of these
governmental units);
(3)
a controlled foreign corporation;
(4)
a foreign partnership that is either engaged in a U.S. trade or business or whose Untied States partners in the aggregate hold more than 50% of the
income or capital interests in the partnership;
(5)
a foreign person that derives 50% or more of its gross income for certain periods from the conduct of a trade or business in the U.S.; or
(6)
a U.S. branch of a foreign bank or insurance company.
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