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Taxes on Income | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
TAXES ON INCOME | NOTE 7 - 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 and on February 16, 2022, the Company received a status of “Technologic Preferred Enterprise” as defined under the Investment Law (the “Approvals”). In accordance with the Approvals, starting in 2017 and until 2026, 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%. The reduced tax rate applies only with respect to the revenue attributable to the portion of intellectual property developed in Israel. The Preferred Technological Income is calculated for each tax year by applying the “Nexus” formula as detailed in the Israeli regulations. 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 2021 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 the U.K, 30% in Germany, 21% in U.S. and 16% in Romania).
| 3) | On October 8, 2021, 136 countries approved a statement known as the OECD BEPS Inclusive Framework, which builds upon the OECD’s continuation of the BEPS project. The first pillar is focused on the allocation of taxing rights between countries for in-scope multinational enterprises that sell goods and services into countries with little or no local physical presence. The second pillar is focused on developing a global minimum tax rate of at least 15 percent applicable to in-scope multinational enterprises. The Company is monitoring the developments closely to ensure that the Company is compliant with the various requirements.
| c. | Deferred income taxes:
| 1) | Provided in respect of the following:
|  | December 31, |
|  | 2 0 2 2 |  |  | 2 0 2 1 |
|  | U.S. dollars in thousands |
Research and development expenses |  | $ | 105 |  |  | $ | 104 |
Carryforward tax losses, see (2) below |  |  | 1,388 |  |  |  | 1,588 |
Other |  |  | 10 |  |  |  | 18 |
Less - valuation allowance, see (2) below |  |  | (1,360 | ) |  |  | (1,526 | )
|  | $ | 143 |  |  | $ | 184 |
Deferred income tax assets are presented in the balance sheet among non-current assets. Also, as of December 31, 2022 and 2021, the Company has deferred income tax liability in amount of $112 thousand and $157 thousand, respectively which is calculated on temporary difference on intangible assets, which were recorded as a part of Message Mobile’s acquisition. Deferred income tax liability is presented in the balance sheet among long-term liabilities.
| 2) | As of December 31, 2022 and 2021, the Company has provided valuation allowances in respect of certain deferred tax assets in certain subsidiaries resulting from tax losses 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 2 |  |  | 2 0 2 1 |  |  | 2 0 2 0 |
|  | U.S. dollars in thousands |
Current: |  |  |  |  |  |  |  |  |
In Israel |  | $ | 335 |  |  | $ | 687 |  |  | $ | 420 |
Outside Israel |  |  | (12 | ) |  |  | 346 |  |  |  | 167 |
|  |  | 323 |  |  |  | 1,033 |  |  |  | 587 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
In Israel |  |  | 1 |  |  |  | (18 | ) |  |  | (59 | )
Outside Israel |  |  | 6 |  |  |  | (79 | ) |  |  | (69 | )
|  | $ | 330 |  |  | $ | 936 |  |  | $ | 459 |
| 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 2 |  |  | 2 0 2 1 |  |  | 2 0 2 0 |
|  | U.S. dollars in thousands |
Income before taxes on income, as reported in the statements of operations* |  | $ | 5,617 |  |  | $ | 6,883 |  |  | $ | 5,842 |
Theoretical tax expense |  |  | 1,292 |  |  |  | 1,583 |  |  |  | 1,344 |
Less - tax benefits arising from Technologic Preferred Enterprise status, see a. above |  |  | (797 | ) |  |  | (739 | ) |  |  | (796 | )
|  |  | 495 |  |  |  | 844 |  |  |  | 548 |
Increase (decrease) in taxes resulting from other differences: |  |  |  |  |  |  |  |  |  |  |  |
Disallowable deductions |  |  | 20 |  |  |  | 38 |  |  |  | 52 |
Taxes on income from previous years |  |  | (80 | ) |  |  | 169 |  |  |  | - |
Changes in valuation allowance |  |  | (119 | ) |  |  | (127 | ) |  |  | (152 | )
Other |  |  | 14 |  |  |  | 12 |  |  |  | 11 |
Taxes on income for the reported years: |  | $ | 330 |  |  | $ | 936 |  |  | $ | 459 |
* As follows: |  |  |  |  |  |  |  |  |  |  |  |
Taxable in Israel |  | $ | 5,144 |  |  | $ | 4,936 |  |  | $ | 5,135 |
Taxable outside Israel |  |  | 473 |  |  |  | 1,947 |  |  |  | 707 |
|  | $ | 5,617 |  |  | $ | 6,883 |  |  | $ | 5,842 |
| d. | Tax assessments:
As of December 31, 2022, the Company’s tax assessments through the 2017 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 https://asc.fasb.org/extlink&oid=121826272&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 https://asc.fasb.org/extlink&oid=122134291&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 https://asc.fasb.org/extlink&oid=121826272&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 https://asc.fasb.org/extlink&oid=122134291&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 https://asc.fasb.org/extlink&oid=121826272&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 https://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 https://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 https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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