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TAXES ON INCOME
 9 Months Ended
Sep. 30, 2021
Income Tax Disclosure [Abstract]  
TAXES ON INCOME

NOTE 10: TAXES ON INCOME

 

  A. Tax rates applicable to the income of the Company:

 

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

 

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 INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

 

NOTE 10: TAXES ON INCOME (Cont.)

 

  B. 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

September 30

  

As of

December 31

 
   2021   2020 
         
Deferred R&D expenses  $48   $114 
Operating loss carryforward   32,564    32,256 
 Total   $32,612   $32,370 
           
Net deferred tax asset before valuation allowance  $7,130   $7,076 
Valuation allowance   (7,130)   (7,076)
Net deferred tax asset  $-   $- 

 

As of September 30, 2021, the Company has provided valuation allowances of $7,130 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.

 

  C. Available carryforward tax losses:

 

As of September 30, 2021 Viewbix Israel incurred operating losses in Israel of approximately $14,042 which may be carried forward and offset against taxable income in the future for an indefinite period.

 

As of September 30, 2021 the Company generated net operating losses in the U.S. of approximately $18,522 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.

 

 

VIEWBIX INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

 

U.S. dollars in thousands (except share data)

 

NOTE 10: TAXES ON INCOME (Cont.)

 

  D. Loss (income) from continuing operations, before taxes on income, consists of the following:

 

   2021   2020   2021   2020 
   For the nine months ended September 30   For the three months ended September 30 
   2021   2020   2021   2020 
                 
USA  $69    6   $27    (4)
Israel   185    303    71    48 
Total loss before taxes on income  $254    309   $98    44