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INCOME TAX (Tables) | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Schedule of Components of Income Taxes |
|  | US dollars |
|  | Year ended December 31, |
(in thousands) |  | 2022 |  |  | 2021 |  |  | 2020 |
Income taxes (tax benefit): |  |  |  |  |  |  |  |  |
Current taxes: |  |  |  |  |  |  |  |  |
In Israel |  |  | 9,110 |  |  |  | 4,916 |  |  |  | 5,841 |
Outside Israel |  |  | 4,711 |  |  |  | 6,954 |  |  |  | 4,341 |
|  |  | 13,821 |  |  |  | 11,870 |  |  |  | 10,182 |
Deferred taxes: |  |  |  |  |  |  |  |  |  |  |  |
In Israel |  |  | (102 | ) |  |  | (300 | ) |  |  | (553 | )
Outside Israel |  |  | (634 | ) |  |  | (143 | ) |  |  | (1,605 | )
|  |  | (736 | ) |  |  | (443 | ) |  |  | (2,158 | )
Taxes in respect of prior years: |  |  |  |  |  |  |  |  |  |  |  |
In Israel |  |  | (457 | ) |  |  | 341 |  |  |  | (*)2,751 |
Outside Israel |  |  | 117 |  |  |  | 86 |  |  |  | 81 |
|  |  | (340 | ) |  |  | 427 |  |  |  | 2,832 |
|  |  | 12,745 |  |  |  | 11,854 |  |  |  | 10,856 |
| (*) | During November 2020, the Company has received tax assessments from the Israeli tax authority ("ITA") 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 timing differences (this amount was claimed by the Company in its tax filings for the years ended December 31, 2019, 2020 and 2021) related to the deduction of certain expenses for tax purposes. The Company had reached, in November 2020, an agreement with ITA that these amounts will be deducted only during the years 2019-2022. Accordingly, the Company recorded tax expenses in the amount of NIS 9 million (approximately US$3 million) in respect of prior periods, and simultaneously recorded a deferred tax benefit in a similar amount. In addition, the Company was required to pay ITA an amount of NIS 2 million (approximately US$0.6 million) as interest expense. Such amount was recognized as part of financing income, net.
Schedule of Income Tax Reconciliation |
|  | US dollars |
|  | Year ended December 31, |
(in thousands) |  | 2022 |  |  | 2021 |  |  | 2020 |
Pretax income |  |  | 52,830 |  |  |  | 48,968 |  |  |  | 29,039 |
Statutory tax rate |  |  | 23 | % |  |  | 23 | % |  |  | 23 | %
Tax computed at the ordinary tax rate |  |  | 12,151 |  |  |  | 11,263 |  |  |  | 6,679 |
Nondeductible expenses (income) |  |  | 2,123 |  |  |  | (282 | ) |  |  | 2,220 |
Losses and timing differences in respect of which no deferred taxes assets were recognized |  |  | 1,742 |  |  |  | 446 |  |  |  | 423 |
Tax adjustment in respect of different tax rates |  |  | 499 |  |  |  | 1,202 |  |  |  | 753 |
Adjustment in respect of tax rate deriving from “approved enterprises” |  |  | (3,002 | ) |  |  | (1,874 | ) |  |  | (1,583 | )
Tax related to previous years |  |  | (340 | ) |  |  | 427 |  |  |  | 2,832 |
Others |  |  | (428 | ) |  |  | 672 |  |  |  | (468 | )
|  |  | 12,745 |  |  |  | 11,854 |  |  |  | 10,856 |
Summary of Deferred Taxes |
|  | US dollars |
|  | December 31, |
(in thousands) |  | 2022 |  |  | 2021 |
Deferred taxes |  |  |  |  |  |
Provision for vacation, recreation and bad debt |  |  | 560 |  |  |  | 1,697 |
Provision for other employee related obligations |  |  | 1,758 |  |  |  | 1,362 |
Provision for deferred revenues/expenses and other obligations |  |  | 4,207 |  |  |  | 3,963 |
Other temporary differences, net |  |  | 3,341 |  |  |  | 2,117 |
|  |  | 9,866 |  |  |  | 9,139 |
|  | US dollars |
|  | December 31, |
(in thousands) |  | 2022 |  |  | 2021 |
Deferred income taxes included in long-term investments and other assets |  |  | 11,400 |  |  |  | 11,091 |
Deferred income taxes included in long-term liabilities |  |  | (1,534 | ) |  |  | (1,952 | )
|  |  | 9,866 |  |  |  | 9,139 |
Schedule of Income Before Income Taxes |
|  | US dollars |
|  | Year ended December 31, |
(in thousands) |  | 2022 |  |  | 2021 |  |  | 2020 |
The Company and its Israeli subsidiaries |  |  | 51,562 |  |  |  | 39,594 |  |  |  | 38,469 |
Non-Israeli subsidiaries |  |  | 1,268 |  |  |  | 9,374 |  |  |  | (9,430 | )
|  |  | 52,830 |  |  |  | 48,968 |  |  |  | 29,039 |

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