| NOTE 25 – |
TAXES ON INCOME |
| |
A. |
Tax rates applicable to
the Group companies: |
The
Israeli corporate tax rate has been 23% since 2018.
A
Company is taxable on its real capital gains at the corporate income tax rate in the year of sale.
| |
B. |
Principal tax rates applicable
to subsidiaries resident outside of Israel: |
Company
incorporated in the United States – Federal tax rate of 21%.
Company
incorporated in the Netherland – The statutory corporate income tax rate in the Netherlands is 19% on annual taxable income of
up to EUR 200 thousand and 25% on annual taxable income exceeding EUR 200 thousand.
| |
C. |
Final tax assessments: |
The
Company and its subsidiaries had tax assessments through the 2020 tax year, which are deemed final.
| |
D. |
Carry forward tax losses: |
The
Company has business losses that can be carried forward totaling approximately $243,547 thousand. The Company did not create deferred
taxes in respect of these business losses and other temporary differences as it does not expect to generate taxable income in the foreseeable
future.
Composition
and movement in deferred taxes:
| | |
In non-current liabilities (1) | | |
In non-current assets (1) | |
| | |
USD in thousands | |
| | |
| | |
| |
| Balance as of January 1, 2024 | |
| (1,575 | ) | |
| 1,459 | |
| | |
| | | |
| | |
| Charged to profit or loss | |
| 404 | | |
| (368 | ) |
| Adjustments arising from translating financial statements from functional currency to presentation currency | |
| 14 | | |
| (13 | ) |
| | |
| | | |
| | |
| Balance as of December 31, 2024 | |
| (1,157 | ) | |
| 1,078 | |
| | |
| | | |
| | |
| Charged to profit or loss | |
| 1,170 | | |
| (1,002 | ) |
| Adjustments arising from translating financial statements from functional currency to presentation currency | |
| (71 | ) | |
| 75 | |
| | |
| | | |
| | |
| Balance as of December 31, 2025 | |
| (60 | ) | |
| 151 | |
| | |
| | | |
| | |
| As shown on balance sheet: | |
| (60 | ) | |
| 151 | |
| (1) | The deferred taxes are computed at a tax rate of 23%. | | | F. | Taxes on income included in profit or loss: |
| | |
Year ended December 31, | |
| | |
2025 | | |
2024 | | |
2023 | |
| | |
USD in thousands | |
| | |
| | |
| | |
| |
| Current taxes | |
| 195 | | |
| 276 | | |
| 210 | |
| Deferred taxes | |
| (168 | ) | |
| (37 | ) | |
| (39 | ) |
| Tax previous years | |
| 715 | | |
| 318 | | |
| - | |
| | |
| 743 | | |
| 557 | | |
| 171 | |
The
reconciliation between the tax expense, assuming that all the income and expenses, gains and losses in profit or loss were taxed at the
statutory tax rate and the taxes on income recorded in profit or loss, is as follows:
| | |
Year ended December 31, | |
| | |
2025 | | |
2024 | | |
2023 | |
| | |
USD in thousands | |
| | |
| | |
| | |
| |
| Loss before taxes on income | |
| (117,306 | ) | |
| (36,589 | ) | |
| (84,435 | )* |
| | |
| | | |
| | | |
| | |
| Statutory tax rate | |
| 23 | % | |
| 23 | % | |
| 23 | % |
| | |
| | | |
| | | |
| | |
| Tax computed at the statutory tax rate | |
| (26,980 | ) | |
| (8,415 | ) | |
| (19,420 | ) |
| | |
| | | |
| | | |
| | |
| Increase (decrease) in taxes on income resulting from the following factors: | |
| | | |
| | | |
| | |
| Adjustment of deferred tax balances relating to prior years | |
| (54 | ) | |
| (37 | ) | |
| - | |
| Different tax rate applicable to foreign subsidiary | |
| (44 | ) | |
| (4 | ) | |
| (2 | ) |
| Utilization of carryforward losses for which no deferred taxes were computed in the past | |
| - | | |
| (31 | ) | |
| (98 | ) |
| Other losses and temporary differences for which no deferred taxes were computed | |
| 15,513 | | |
| 7,380 | | |
| 19,026 | |
| Non-deductible expenses for tax purposes | |
| 888 | | |
| 853 | | |
| - | |
| Non-deductible impairment of intangible | |
| 10,737 | | |
| - | | |
| - | |
| Tax previous years | |
| 702 | | |
| 318 | | |
| - | |
| Other, net | |
| (19 | ) | |
| 493 | | |
| 665 | |
| | |
| | | |
| | | |
| | |
| Taxes on income | |
| 743 | | |
| 557 | | |
| 171 | |
| * | Comparative figures including the discontinued operation results. |
|