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TAXES ON INCOME
 6 Months Ended
Jun. 30, 2022
Income Tax Disclosure [Abstract]  
TAXES ON INCOME

 

NOTE 9: TAXES ON INCOME

 

  A. 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 2022, 2021, 2020 and onwards.

 

 

VIEWBIX INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

 

NOTE 9: 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

June 30

  

As of

December 31

 
   2022   2021 
         
Deferred R&D expenses  $149   $167 
Operating loss carryforward   33,649    33,055 
Differences between tax basis and carrying values of loans (see note 5)  $(73)  $(184)
Total  $33,725   $33,038 
           
Net deferred tax asset before valuation allowance  $7,382   $7,230 
Valuation allowance   (7,382)   (7,230)
Net deferred tax asset  $-   $- 

 

As of June 30, 2022, the Company has provided valuation allowances of $7,382 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 June 30, 2022 Viewbix Israel incurred operating losses in Israel of approximately $14,840 which may be carried forward and offset against taxable income in the future for an indefinite period.

 

As of June 30, 2022 the Company generated net operating losses in the U.S. of approximately $18,809. 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 9: TAXES ON INCOME (Cont.)

 

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

 

                     
   For the six months ended
June 30		   For the three months ended
June 30		 
   2022   2021   2022   2021 
                 
USA  $195   $42   $102   $15 
Israel   142    116    66    63 
Total loss before taxes on income  $337   $158   $168   $78