Company: PERI
Filing Date: 2025-03-25
Form Type: 20-F
Source: 0001178913-25-001021
Chunk: 124

Company: Perion Network Ltd.
Filing Date: 2025-03-25
Form: 20-F
Item: Item 10
Chunk 124
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 Amendment 73 prescribed special tax tracks for technological enterprises as described below, and is in addition to the other existing tax beneficial programs under the Investment Law. On June 30, 2021, certain grandfather rules in Amendment 73 pertaining the preferred enterprises have expired, most significantly the limitation of Preferred Income to exclude such which is generated by intangible assets not related to the manufacturing or such that would not have been recognized as Preferred Technology Income.
 
Tax benefits under Amendment 73 that became effective on January 1, 2017.
 
Amendment 73 provides tax benefits for two types of “Technology Enterprises”, as described below, and is in addition to the other existing tax beneficial programs under the Investment Law.
 
Amendment 73 applies to “Preferred Technology Enterprise” that meet certain conditions, including, inter-alia, the following:
 

•   A company’s average R&amp;D expenses in the three years prior to the current tax year must be greater than or equal to 7% of
                        its total revenue or exceed NIS 75 million (approximately $21 million) per year; and                    
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•    A company must also satisfy one of the following conditions: (1) at least 20% of the workforce (or at least 200 employees) are employees
     whose full salary has been paid and reported in the Company’s financial statements as R&amp;D expenses; (2) a venture capital investment
     of an amount approximately equivalent to at least NIS 8 million (approximately $2.2 million) was previously made in the company, and the
    company did not change its line of business after such investment; (3) growth in sales by an average of 25% or more, over the three years
         preceding the tax year provided that the company’s turnover in the tax year and in each of the previous three years was at least    
         NIS 10 million (approximately $2.8 million); or (4) the number of the company’s employees increased by 25% (on average) or more     
     in the course of three years, provided that the company employed at least 50 employees in the tax year and in each of the previous three
                                                                      years.                                                                 
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•   Companies that do not meet one of the above two conditions may request preliminary approval from the National Authority for Technological
                                Innovation regarding being companies that own an innovation-promoting enterprise.                            
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•   A company must qualify as a “