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Income Taxes

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Note 14.

Income Taxes.

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

Tax rates applicable to the income of the Company:

Viewbix Inc. is taxed according to U.S. tax laws. On December 22, 2017, the U.S. enacted the Tax Cuts and Jobs Act (the “Act”), which among other provisions, reduced the U.S. corporate tax rate from 35% to 21%, effective January 1, 2018.

Viewbix Israel and Israeli subsidiaries are taxed according to Israeli tax laws. The Israeli corporate tax rate is 23% in the years 2018, 2019 and onwards.

Deferred income taxes:

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets are as follows:

		As of December 31,				As of December 31,
		2019				2018

Deferred R&D expenses		$	239			$	271
Operating loss carryforward			32,443				10,784
		$	32,682			$	11,055

Net deferred tax asset before valuation allowance		$	7,149			$	2,543
Valuation allowance			(7,149	)			(2,543	)
Net deferred tax asset		$	-			$	-

As of December 31, 2019, the Company has provided valuation allowances of $7,149 in respect of deferred tax assets resulting from tax loss carryforward and other temporary differences. Management currently believes that because the Company has a history of losses, it is more likely than not that the deferred tax regarding the loss carryforward and other temporary differences will not be realized in the foreseeable future.

Available carryforward tax losses:

As of December 31, 2019, the Virtual Crypto Israel and Viewbix Israel incurred operating losses in Israel of approximately $1,229 and $13,075, respectively, which may be carried forward and offset against taxable income in the future for an indefinite period.

As of December 31, 2019, the Company generated net operating losses in the U.S. of approximately $18,378. Net operating losses in the U.S. 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.

Loss before taxes on income, consists of the following:

		For the year ended December 31
		2019				2018

USA		$	113			$	(9	)
Israel			989				569
		$	1,102			$	560

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 tax incurred in income statement:

		For the year ended December 31
		2019				2018

Net loss before tax on income		$	1,102			$	560
Statutory tax rate			23	%			23	%
Tax under statutory tax rate			253				129
Change in valuation allowance			(238	)			(114	)
Taxes on income		$	15			$	15