NOTE 10: INCOME TAXES
a. Basis of taxation
The Company and its subsidiary are taxed under the domestic tax laws of the jurisdiction of incorporation of each entity.
b. Corporate tax rates in Israel
| F-42 |
|
|
The corporate tax rate in Israel was 26.5% in 2015 and 25% in 2016. The regular corporate tax rate as of January 1, 2017 is 24% and as of January 1, 2018 will be 23%.
c. Deferred Tax Assets
The components of the Company’s deferred tax assets as of December 31, 2016 and 2015 were as follows:
|
|
| December 31, 2016 |
| December 31, 2015 |
| Individual components giving rise to the deferred tax assets are as follows: |
| US dollars | ||
| Tax loss carry forwards | $ | 3,712,693 | $ | 1,858,971 |
| Gross deferred tax assets | $ | 861,925 | $ | 492,627 |
| Valuation allowance |
| (861,925) |
| (492,627) |
| Total deferred tax assets | $ | - | $ | - |
As of December 31, 2016, the Company had net operating carry forward tax loss of approximately $0.9 million.