XML 88 R21.htm IDEA: XBRL DOCUMENT

Income Tax

12 Months Ended

Dec. 31, 2020

NOTE 15 – INCOME TAX

	A.	US resident companies are taxed on their worldwide income for corporate income tax purposes at a statutory rate of 21% this reflect certain effects of the Act which includes a reduction in the corporate tax rate from 35% to 21% as well as other changes. No further taxes are payable on this profit unless that profit is distributed. If certain conditions are met, income derived from foreign subsidiaries is tax exempt in the US under applicable tax treaties to avoid double taxation.
		Income of the Israeli company is taxable from 2018 and onwards, at corporate tax rate of 23%.
		The Company and Save Foods Ltd. has not received final tax assessments since its inception.
		As of December 31, 2020, the Company and Save Foods Ltd. has estimated carry forward losses for tax purposes of approximately $1,264,000 and $9,412,000, respectively, which can be offset against future taxable income, if any.

B.

The following is reconciliation between the theoretical tax on pre-tax income, at the tax rate applicable to the Company (federal tax rate) and the tax expense reported in the financial statements:

	Year ended December 31
	2020			2019

Pretax loss		1,593,139			1,971,417
Federal tax rate		21	%		21	%
Income tax computed at the ordinary tax rate		334,559			413,998
Non-deductible expenses		(63,565	)		(2,278	)
Stock-based compensation		(109,772	)		(93,970	)
Tax in respect of differences in corporate tax rates		13,480			26,688
Losses and timing differences in respect of which no deferred taxes were generated		(174,702	)		(344,438	)
		-			-

C.

Deferred taxes result primarily from temporary differences in the recognition of certain revenue and expense items for financial and income tax reporting purposes. Significant components of the Company’s future tax assets are as follows:

	Year ended December 31
	2020			2019

Composition of deferred tax assets:
Provision for employee related obligation		31,627			29,353
Non capital loss carry forwards		2,350,367			2,171,821
Valuation allowance		(2,381,994	)		(2,201,174	)
		-			-

- 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 + Details