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INCOME TAX (Tables) | 12 Months Ended
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Dec. 31, 2021
Income Tax Disclosure [Abstract] |
Schedule of Components of Income Taxes | A. Taxes on income included in the statements of income:
|  | US dollars
|  | Year ended December 31,
(in thousands) |  | 2021 |  |  | 2020 |  |  | 2019 |
Income taxes (tax benefit): |  |  |  |  |  |  |  |  |  |
Current taxes: |  |  |  |  |  |  |  |  |  |
In Israel |  |  | 4,916 |  |  |  | 5,841 |  |  |  | 6,155 |
Outside Israel |  |  | 6,954 |  |  |  | 4,341 |  |  |  | 7,674 |
|  |  | 11,870 |  |  |  | 10,182 |  |  |  | 13,829 |
Deferred taxes: |  |  |  |  |  |  |  |  |  |  |  |
In Israel |  |  | (300 | ) |  |  | (553 | ) |  |  | 299 |
Outside Israel |  |  | (143 | ) |  |  | (1,605 | ) |  |  | (2,545 | )
|  |  | (443 | ) |  |  | (2,158 | ) |  |  | (2,246 | )
Taxes in respect of prior years: |  |  |  |  |  |  |  |  |  |  |  |
In Israel |  |  | 339 |  |  |  | (*) 2,751 |  |  |  | 439 |
Outside Israel |  |  | 88 |  |  |  | 81 |  |  |  | 212 |
|  |  | 427 |  |  |  | 2,832 |  |  |  | 651 |
|  |  | 11,854 |  |  |  | 10,856 |  |  |  | 12,234 |
(*) During November 2020, the Company has received from the Israeli tax authority ("ITA") tax assessments for the years 2016-2018 amounting to approximately NIS 13 million (approximately US$ 4 million). An amount of approximately NIS 6 million (approximately US$ 2 million) due to the timing differences (out of this amount, approximately NIS 2 million were claim in the tax assessment for the year ended December 31, 2019) related to the deduction of certain expenses for tax purposes, which was agreed to be deducted in the coming years. Accordingly, the Company recorded an amount of NIS 9 million (approximately US$ 3 million) as tax expense related to prior periods and a deferred tax benefit in a similar amount. In addition, the Company was required to pay the ITA an amount of NIS 2 million (approximately US$ 0.5 million) as interest expense. Such amount was recognized as part of financing income, net.
Schedule of Income Tax Reconciliation | J. The following is reconciliation between the theoretical tax on pretax income, at the applicable Israeli tax rate, and the tax expense reported in the financial statements:
|  | US dollars
|  | Year ended December 31,
(in thousands) |  | 2021 |  |  | 2020 |  |  | 2019 |
Pretax income |  |  | 48,968 |  |  |  | 29,039 |  |  |  | 23,204 |
Statutory tax rate |  |  | 23 | % |  |  | 23 | % |  |  | 23 | %
Tax computed at the ordinary tax rate |  |  | 11,263 |  |  |  | 6,679 |  |  |  | 5,337 |
Nondeductible expenses (income) |  |  | (282 | ) |  |  | 2,220 |  |  |  | 3,117 |
Losses and timing differences in respect of which no deferred taxes assets were recognized |  |  | 446 |  |  |  | 423 |  |  |  | 297 |
Tax adjustment in respect of different tax rates |  |  | 1,202 |  |  |  | 753 |  |  |  | 3,045 |
Taxes in respect of withholding at the source from royalties and dividends |  |  | - |  |  |  | - |  |  |  | 725 |
Adjustment in respect of tax rate deriving from “approved enterprises” |  |  | (1,874 | ) |  |  | (1,583 | ) |  |  | (128 | )
Tax related to previous years |  |  | 427 |  |  |  | 2,832 |  |  |  | 651 |
Others |  |  | 672 |  |  |  | (468 | ) |  |  | (810 | )
|  |  | 11,854 |  |  |  | 10,856 |  |  |  | 12,234 |
Summary of Deferred Taxes | Composition:
|  | US dollars
|  | December 31,
(in thousands) |  | 2021 |  |  | 2020 |
Deferred taxes |  |  |  |  |  |  |
Provision for vacation, recreation and bad debt |  |  | 1,697 |  |  |  | 1,894 |
Provision for other employee related obligations |  |  | 1,362 |  |  |  | 1,400 |
Provision for deferred revenues/expenses and other obligations |  |  | 3,963 |  |  |  | 4,292 |
Other temporary differences, net |  |  | 2,117 |  |  |  | 1,280 |
|  |  | 9,139 |  |  |  | 8,866 |
|  | US dollars
|  | December 31,
(in thousands) |  | 2021 |  |  | 2020 |
Deferred income taxes included in long-term investments and other assets |  |  | 11,091 |  |  |  | 11,360 |
Deferred income taxes included in long-term liabilities |  |  | (1,952 | ) |  |  | (2,494 | )
|  |  | 9,139 |  |  |  | 8,866 |
Schedule of Income Before Income Taxes |
|  | US dollars |
|  | Year ended December 31,
(in thousands) |  | 2021 |  |  | 2020 |  |  | 2019 |
The Company and its Israeli subsidiaries |  |  | 39,594 |  |  |  | 38,469 |  |  |  | 27,045 |
Non-Israeli subsidiaries |  |  | 9,374 |  |  |  | (9,430 | ) |  |  | (3,841 | )
|  |  | 48,968 |  |  |  | 29,039 |  |  |  | 23,204 |

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