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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 11:- | TAXES ON INCOME
| a. | Tax rates applicable to the Company:
On December 22, 2017, the Tax Cuts and Jobs Act was enacted and made key changes to US tax law which include (i) establish a flat corporate income tax rate of 21% to replace previous rates that ranged from 15% to 39% and eliminates the corporate alternative minimum tax; (ii) create a territorial tax system rather than a worldwide system, which will generally allow companies to repatriate future foreign source earnings without incurring additional US taxes by providing a 100% exemption for the foreign source portion of dividends from certain foreign subsidiaries; (iii) subject certain foreign earnings on which US income tax is currently deferred to a one-time transition tax; (iv) create a "minimum tax" on certain foreign earnings and a new base erosion anti-abuse tax that subjects certain payments made by a US company to a related foreign company to additional taxes; (v) create an incentive for US companies to sell, lease or license goods and services abroad by effectively taxing them at a reduced rate; (vi) reduce the maximum deduction for Net Operating Loss ("NOL") carryforwards arising in tax years beginning after 2017 to a percentage of the taxpayer's taxable income, allows any NOLs generated in tax years beginning after December 31, 2017 to be carried forward indefinitely and generally repeals carrybacks; (vii) elimination of foreign tax credits or deductions for taxes (including withholding taxes) paid or accrued with respect to any dividend to which the new exemption applies, but foreign tax credits will continue to be allowed to offset tax on foreign income taxed to the US shareholder subject to limitations; (viii) limit the deduction for net interest expense incurred by US corporations, (ix) allow businesses to immediately write off (or expense) the cost of new investments in certain qualified depreciable assets made after September 27, 2017 (but would be phased down starting in 2023); (x) may require certain changes in tax accounting methods for revenue recognition; (xi) repeal the Section 199 domestic production deductions beginning in 2018; (xii) eliminate or reduce certain deductions, exclusions and credits, and adds other provisions that broaden the tax base. The Company has calculated an estimate of the impact of the Tax Act in our year-end income tax provision in accordance with our understanding of the Tax Act and guidance available as of December 31, 2020. The provisional amount related to the re-measurement of the Company's net U.S. deferred tax asset, based on the rate at which they are now expected to reverse in the future, considered immaterial, but which was fully and equally offset by a corresponding reduction in the Company's valuation allowance. The effect of the change in federal corporate tax rate from 39% to 21% is subject to change based on resolution of estimates used in determining the amounts of deferred tax assets and liabilities that were re-measured.
| b. | Tax rates applicable to Wize Israel and OcuWize:
In December 2016, the Israeli Parliament approved the Economic Efficiency Law (Legislative Amendments for Applying the Economic Policy for the 2017 and 2018 Budget Years), a reduction of the corporate tax rate in 2017 from 25% to 24%, and in 2018 and thereafter from 24% to 23%. Accordingly, taxable income of the Israeli Subsidiary is subject to the Israeli Corporate tax rate,which was 23% in 2020 and 2019.
| c. | Net operating loss carry forward:
As of December 31, 2020, the Company has NOL carry forwards for federal income tax purposes of approximately $7,570. The application of the NOL carry forwards is limited due to IRC section 382 limitation. The annual NOL carry forward (pre-merger, approximately $4,784) is limited to $10.965 per year. The balance as of December 31, 2020 of the NOL carry forwards of approximately $4,786 is available in full. As of December 31, 2020, the Company's subsidiaries, Wize Israel and OcuWize have accumulated losses for tax purposes in the amount of approximately $5,476 and $5,366 respectively, which may be carried forward and offset against taxable income in the future for an indefinite period in Israel.
| d. | As of December 31, 2020, Wize Israel's 2011 tax assessment was considered final. OcuWize has not received final tax assessment since its inception.
| e. | Loss before taxes on income consists of the following:
|  | December 31, |
|  | 2020 |  |  | 2019 |
Domestic |  | $ | (1,318 | ) |  | $ | (1,709 | )
Foreign (*) |  |  | (10,842 | ) |  |  | (9,613 | )
|  | $ | (12,160 | ) |  | $ | (11,322 | )
| (*) | Relates to Wize Israel and OcuWize.
| f. | 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:
|  | December 31, |
|  | 2020 |  |  | 2019 |
Deferred tax assets: |  |  |  |  |  |  |  |
Operating loss carry forwards |  | $ | 2,899 |  |  | $ | 2,974 |
Reserves and allowances |  |  | 5 |  |  |  | 6 |
Research and development |  |  | 261 |  |  |  | 128 |
Net deferred tax asset before valuation allowance |  |  | 3,165 |  |  |  | 3,108 |
Valuation allowance |  |  | (3,165 | ) |  |  | (3,108 | )
Net deferred tax asset |  | $ | - |  |  | $ | - |
In assessing the realization of deferred tax assets, management considers whether it is more likely than not that all or some portion of the deferred tax assets will not be realized. The ultimate realization of the deferred tax assets is dependent upon the generation of future taxable income during the periods in which temporary differences are deductible and NOLs are utilized. Based on consideration of these factors, the Company recorded a full valuation allowance at December 31, 2020 and 2019.
| g. | Below is the reconciliation between the "theoretical" income tax expense or benefit, assuming that all the income was taxed at the regular tax rate applicable to companies in Israel and the taxes recorded in the statements of comprehensive loss in the reporting year:
|  | Year ended December 31, |
|  | 2020 |  |  | 2019 |
Loss before taxes on income, as reported in the statements of comprehensive loss |  |  | (4,929 | ) |  |  | (3,450 | )
Theoretical tax benefit on this loss |  |  | 1,035 |  |  |  | 725 |
Expenses not deductible for tax purposes |  |  | (52 | ) |  |  | (86 | )
Increase in taxes resulting mainly from taxable losses in the reported year for which no net deferred tax assets were recognized |  |  | (983 | ) |  |  | (639 | )
Tax benefit |  |  | - |  |  |  | - |

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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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