Incredimail 2013 Annual Report Download - page 124

PERION NETWORK LTD. AND ITS SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
U.S. dollars in thousands (except share and per share data)
Commencing 2011, the Company elected to apply the new Preferred Enterprise benefits. Benefits granted to a Preferred
Enterprise include reduced tax rates. The tax rate is 15% in 2011 and 2012, 12.5% in 2013 and 16% starting from 2014.
A distribution from a Preferred Enterprise out of the "Preferred Income" would be subject to 15% withholding tax for
Israeli-resident individuals and non-Israeli residents (subject to applicable treaty rates).
Pursuant to Amendment 69 to the Israeli Investment Law (“Amendment 69”),
a company that elected by November 11,
2013 to pay a reduced corporate tax rate as set forth in that amendment (rather than the regular corporate tax rate
applicable to Approved Enterprise income) with respect to undistributed exempt income accumulated by the company
until December 31, 2011 is entitled to distribute a dividend from such income without being required to pay additional
corporate tax with respect to such dividend. A company that has so elected must make certain qualified investments in
Israel over the five-
year period commencing in 2013. A company that has elected to apply the amendment cannot
withdraw from its election.
During 2013, the Company applied the provisions of Amendment 69 to all undistributed exempt profits accrued prior to
2011 by the Company
and its Israeli subsidiary. Consequently, the Company paid ILS 6.3 million ($ 1.8) corporate tax on
exempt income of ILS 63.2 million ($ 18.2). This income is available to be distributed as dividends in future years with no
additional corporate tax liability. As a result, the Company is required to invest ILS 4.7 million ($ 1.4) in its industrial
enterprises in Israel over a five year period. Such investment may be in the form of the acquisition of industrial assets
(excluding real estate assets), investment in R&D in Israel, or payroll payments to new employees to be hired by the
enterprise .
NOTE 9:- LONG-TERM LOAN (Cont.)
b.
As of December 31, 2013, the aggregate principal annual maturities according to the loan agreement are as follows:
Repayment
amount
2014 (current maturities)
2,300
2015
2,300
2016
1,550
2017
400
Total
6,550
NOTE 10:
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INCOME TAXES
a.
Tax benefits under the Israel Law for the Encouragement of Capital Investments, 1959 (the "Law"):
F
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