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Taxes on Income

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Taxes on Income

NOTE 13 - TAXES ON INCOME

The Company is subject to income taxes under the Israeli and U.S. tax laws:

Corporate tax rates

The Company is subject to Israeli corporate tax rate of 23% for the years ended 2020 and 2019.

The Company is subject to a U.S. Federal tax of 21% for the years ended December 31, 2020 and 2019.

As of December 31, 2020, the Company generated net operating losses in Israel of approximately $19,773 which may be carried forward and offset against taxable income in the future for an indefinite period.

As of December 31, 2020, the Company incurred net operating losses in the U.S. of approximately $492,487. Net operating losses in the United States are available through 2035. Utilization of U.S. net operating losses may be subject to substantial annual limitation due to the “change in ownership” provisions of the Internal Revenue Code of 1986 and similar state provisions. The annual limitation may result in the expiration of net operating losses before utilization.

The Company is still in its development stage and has not yet generated revenues, therefore, it is more likely than not that sufficient taxable income will not be available for the tax losses to be utilized in the future. Therefore, a valuation allowance was recorded to reduce the deferred tax assets to its recoverable amounts.

	Year ended December 31,
	2020			2019

Net operating loss carry-forwards	$	512,260		$	503,065

Other net deferred tax assets		107,574			115,705
Valuation allowance		(107,574	)		(115,705	)
Net deferred tax assets	$	-		$	-

Reconciliation of Income Taxes:

The following is a reconciliation of the taxes on income assuming that all income is taxed at the ordinary statutory corporate tax rate in Israel and the effective income tax rate:

	Year ended December 31,
	2020			2019

Net loss in Israel	$	4,042		$	3,972
Net loss in U.S.		5,127			3,275
Statutory tax rate		21-23	%		21-23	%
Income Tax under statutory tax rate		2,005			1,601
Change in valuation allowance		(2,005	)		(1,601	)
Actual provision for income taxes	$	-		$	-

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

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