Incredimail 2012 Annual Report Download - page 119

PERION NETWORK LTD. AND ITS SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
U.S. dollars in thousands (except share and per share data)
Various industrial programs of the Company had been granted "Approved Enterprise" and "Beneficiary Enterprise" status,
which provides certain benefits, including tax exemptions and reduced tax rates. Income not eligible for Approved
Enterprise and Beneficiary Enterprise benefits is taxed at a regular rate.
In the event dividends are distributed from tax-
exempt income, the amount distributed will be subject to corporate tax at
the rate ordinarily applicable to the Approved Enterprise's income. Tax-
exempt income generated under the Company's
Beneficiary Enterprise program will be subject to taxes upon dividend distribution or complete liquidation. The
entitlement to the above benefits is conditional upon the Company's fulfilling the conditions stipulated by the Law and
regulations published thereunder. Should the Company fail to meet such requirements in the future, income attributable to
its Approved Enterprise and Beneficiary Enterprise programs could be subject to the statutory Israeli corporate tax rate
and the Company could be required to refund a portion of the tax benefits already received, with respect to such programs.
As of December 31, 2012, management believes that the Company is in compliance with the Law’s conditions.
In November 2010 the Company's Board decided to change its dividend policy whereby the Company does not intend to
distribute dividends from earnings of 2011 and beyond. As of December 31, 2012, tax exempt income incurred up to
December 31, 2010 that was not distributed was approximately $ 8,900. Should this amount be distributed, it would be
taxed at the corporate tax rate applicable to such profits (currently 25%), and an income tax liability of up to
approximately $ 2,225 would be incurred.
NOTE 9:
-
LONG
-
TERM LOAN
(Cont.)
b.
As of December 31, 2012, the aggregate principal annual maturities according to the loan agreement are as follows:
Repayment
amount
2013 (current
maturities)
$
2,300
2014
2,300
2015
2,300
2016
1,550
2017
400
Total
$
8,850
NOTE 10:
-
INCOME TAXES
a.
Tax benefits under the Israel Law for the Encouragement of Capital Investments, 1959 (the "Law"):
F
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