Company: PERI
Filing Date: 2025-03-25
Form Type: 20-F
Source: 0001178913-25-001021
Chunk: 80

Company: Perion Network Ltd.
Filing Date: 2025-03-25
Form: 20-F
Item: Item 5
Chunk 80
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 nominee company (whether or not the recipient is
a substantial shareholder), unless a lower rate is provided under an applicable tax treaty (provided that a certificate from the ITA allowing
for a reduced withholding tax rate is obtained in advance). However, a distribution of dividends to non-Israeli residents is generally
subject to withholding tax at source at a rate of 20% if the dividend is distributed from income attributed to a “ Preferred Enterprise”
(as such terms are defined in the Investment Law), subject to the receipt in advance of a valid certificate from the ITA allowing for
such reduced tax rate, or such lower rate as may be provided under an applicable tax treaty. If such dividends are distributed by a “ Preferred
Technology Enterprise” or a “ Special Preferred Technology Enterprise”, paid out of “ Preferred Technology Income”
(as such terms are defined under the Investment Law), to a parent non-Israeli company that holds, alone or together with other foreign
companies, 90% or more in the Israeli company and other conditions are met, the withholding tax rate will be 4% (or a lower rate under
a tax treaty, if applicable, subject to the receipt in advance of a valid certificate from the ITA allowing for a reduced tax rate).

For example, under the United States-Israel Tax Treaty and subject
to the eligibility to the benefits under such treaty, the maximum rate of tax withheld at source in Israel on dividends paid to a holder
of our ordinary shares who is a U. S. resident (for purposes of the United States-Israel Tax Treaty) is 25%. However, for dividends not
generated by a Preferred Enterprises and paid to a U. S. corporation holding 10% or more of the outstanding voting capital throughout the
tax year in which the dividend is distributed as well as during the previous tax year, the maximum rate of withholding tax is generally
12.5%, provided that not more than 25% of the gross income of the Israeli resident paying corporation for such preceding year consists
of certain types of dividends and interest. Notwithstanding the foregoing, dividends distributed from income attributed to a Preferred
Enterprise are not entitled to such reduction under such tax treaty but are subject to withholding tax at the rate of 20% for such a United
States corporate shareholder (subject to the receipt in advance of a valid certificate from the ITA allowing for a reduced tax rate),
provided that the conditions related to the holding of 10% of our voting capital and to our gross income for the previous year (as set
forth