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Taxes on Income | 12 Months Ended
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Dec. 31, 2020
Income Tax Disclosure [Abstract] |
TAXES ON INCOME | NOTE 8 - TAXES ON INCOME
| a. | Israeli corporate tax
| 1) | Tax benefits under the Law for the Encouragement of Industry (Taxes), 1969:
The Company is an “Industrial Company”, as defined by this law. As such, the Company is entitled to claim depreciation at increased rates for equipment used in industrial activity, as stipulated by regulations published under the Income Tax (Inflationary Adjustments) Law, 1985.
| 2) | Tax benefits under the Law for the Encouragement of Capital Investments, 1959 (the “Investment Law”):
On February 18, 2018, the Company received a status of “Technologic Preferred Enterprise” as defined under the Investment Law (the “Approval”). In accordance with the Approval, starting in 2017 and until 2021, income originating from granting the right of use as defined in the Approval, will be defined as Technologic Preferred Income, as defined under the Law, and will be subject to a tax rate of 7.5%. Dividend distributed from income which is attributed to a “Technologic Preferred Enterprise” will be subject to withholding tax of 20%, subject to a reduced tax rate under the provisions of an applicable double taxation treaty.
| b. | Other applicable tax rates:
| 1) | Income from other sources in Israel
The tax rate relevant to corporates in Israel in the year 2018 and thereafter is 23%.
| 2) | Income of non-Israeli subsidiaries
Non-Israeli subsidiaries are taxed according to tax laws in their countries of residence (19% in U.K, 30% in Germany and 16% in Romania).
| c. | Deferred income taxes:
| 1) | Provided in respect of the following:
|  | December 31, |
|  | 2 0 2 0 |  |  | 2 0 1 9 |
|  | U.S. dollars in thousands |
Research and development expenses |  | $ | 84 |  |  | $ | 27 |
Carryforward tax losses, see (2) below |  |  | 1,604 |  |  |  | 1,822 |
Other |  |  | 11 |  |  |  | 9 |
Less - valuation allowance, see (2) below |  |  | (1,572 | ) |  |  | (1,822 | )
|  | $ | 127 |  |  | $ | 36 |
Deferred income tax assets are presented in the balance sheet among non-current assets.
| 2) | As of December 31, 2020 and 2019, the Company has provided valuation allowances in respect of certain deferred tax assets in certain subsidiaries resulting from tax loss carryforward due to uncertainty concerning their realization.
Taxes on income included in the statements of operations:
| 1) | As follows:
|  | Years Ended December 31, |
|  | 2 0 2 0 |  |  | 2 0 1 9 |  |  | 2 0 1 8 |
|  | U.S. dollars in thousands |
Current: |  |  |  |  |  |  |  |  |
In Israel |  | $ | 420 |  |  | $ | 316 |  |  | $ | 396 |
Outside Israel |  |  | 167 |  |  |  | 172 |  |  |  | 44 |
|  |  | 587 |  |  |  | 488 |  |  |  | 440 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
In Israel |  |  | (59 | ) |  |  | (2 | ) |  |  | (2 | )
Outside Israel |  |  | (69 | ) |  |  | (28 | ) |  |  | - |
|  | $ | 459 |  |  | $ | 458 |  |  | $ | 438 |
| 2) | Following is a reconciliation of the theoretical tax expense, assuming all income is taxed at the regular tax rates applicable to companies in Israel (see b. above), and the actual tax expense:
|  | Years Ended December 31, |
|  | 2 0 2 0 |  |  | 2 0 1 9 |  |  | 2 0 1 8 |
|  | U.S. dollars in thousands |
Income before taxes on income, as reported in the statements of operations* |  | $ | 5,842 |  |  | $ | 5,523 |  |  | $ | 5,572 |
Theoretical tax expense |  |  | 1,344 |  |  |  | 1,270 |  |  |  | 1,281 |
Less - tax benefits arising from Technologic Preferred Enterprise status, see a. above |  |  | (796 | ) |  |  | (651 | ) |  |  | (772 | )
|  |  | 548 |  |  |  | 619 |  |  |  | 509 |
Increase (decrease) in taxes resulting from permanent differences: |  |  |  |  |  |  |  |  |  |  |  |
Disallowable deductions |  |  | 52 |  |  |  | 44 |  |  |  | 44 |
Changes in valuation allowance |  |  | (152 | ) |  |  | (212 | ) |  |  | (106 | )
Other |  |  | 11 |  |  |  | 7 |  |  |  | (9 | )
Taxes on income for the reported years: |  | $ | 459 |  |  | $ | 458 |  |  | $ | 438 |
* As follows: |  |  |  |  |  |  |  |  |  |  |  |
Taxable in Israel |  | $ | 5,135 |  |  | $ | 4,039 |  |  | $ | 4,751 |
Taxable outside Israel |  |  | 707 |  |  |  | 1,484 |  |  |  | 821 |
|  | $ | 5,842 |  |  | $ | 5,523 |  |  | $ | 5,572 |
| d. | Tax assessments:
The Company’s tax assessments through the 2015 tax year, are deemed final.

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- 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. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 + Details
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