Company: PERI
Filing Date: 2025-03-25
Form Type: 20-F
Source: 0001178913-25-001021
Chunk: 85

Company: Perion Network Ltd.
Filing Date: 2025-03-25
Form: 20-F
Item: Item 5
Chunk 85
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 period. The amounts allocated to the taxable year of
the sale or disposition and to any year before we became a PFIC will be taxed as ordinary income. The amount allocated to each other taxable
year will be subject to tax at the highest rate in effect for individuals or corporations, as appropriate, for that taxable year, and
an interest charge will be imposed on the resulting tax liability for each such year. Furthermore, to the extent that distributions received
by a U. S. Holder in any taxable year on its ordinary shares exceed 125% of the average of the annual distributions on the ordinary shares
received during the preceding three taxable years or the U. S. Holder’s holding period, whichever is shorter, such distributions
will be subject to taxation in the same manner. Under a rule commonly referred to as “once a PFIC always a PFIC,” if
we are a PFIC for any taxable year during which a U. S. Holder owns ordinary shares, we will generally continue to be treated as a PFIC
with respect to the U. S. Holder for all succeeding taxable years during which the U. S. Holder owns the ordinary shares, even if we cease
to meet the threshold requirements for PFIC status, unless the U. S. Holder makes a timely “deemed sale” purging election,
in which case any gain on the deemed sale will be taxed under the PFIC rules described above.. If we are a PFIC for any taxable year but
cease to be a PFIC for subsequent taxable years, U. S. Holders should consult their tax advisers regarding the advisability of making the
“deemed sale” election.

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Alternatively, if we are a PFIC for any taxable year and if our
ordinary shares are “regularly traded” on a “qualified exchange,” a U. S. Holder can make a mark-to-market election
that will result in tax treatment different from the general tax treatment for PFICs described above. The ordinary shares will be treated
as “regularly traded” for any calendar year in which more than a de minimis quantity of the ordinary shares are traded on
a qualified exchange on at least 15 days during each calendar quarter. Nasdaq, where the ordinary shares are listed, is a qualified exchange
for this purpose. If a U. S. Holder of ordinary shares makes a timely mark-to-market election, the U. S. Holder generally will recognize
as ordinary income any excess of the fair market value of