Company: PERI
Filing Date: 2025-03-25
Form Type: 20-F
Source: 0001178913-25-001021
Chunk: 87

Company: Perion Network Ltd.
Filing Date: 2025-03-25
Form: 20-F
Item: Item 5
Chunk 87
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 the U. S. Internal Revenue Service (the
“ IRS”). U. S. Holders should consult their tax advisers regarding the determination of whether we are a PFIC for any taxable
year and the potential application of the PFIC rules to their ownership of our ordinary shares.

Taxation of Distributions

This discussion is subject to the discussion under “ - Passive Foreign Investment
Company Rules” above.

We currently do not intend to make cash distributions on the ordinary shares. Any distributions
(other than certain pro rata distributions of ordinary shares) will be treated as dividends to the extent paid out of our current or accumulated
earnings and profits, as determined under U. S. federal income tax principles. Because we do not maintain calculations of our earnings
and profits under U. S. federal income tax principles, it is expected that distributions generally will be reported to U. S. Holders as
dividends. Dividends will not be eligible for the dividends-received deduction generally available to U. S. corporations under the Code.
Subject to applicable limitations, dividends paid on our ordinary shares to certain non-corporate U. S. Holders may be taxable at a favorable
rate, provided that we are not (and are not treated with respect to any U. S. Holder as) a PFIC for our taxable year in which the dividend
is paid or the preceding taxable year. Non-corporate U. S. Holders should consult their tax advisers regarding the availability of this
favorable rate in their particular circumstances and taking into account our PFIC status for any taxable year.

Dividends will generally be included in a U. S. Holder’s income
on the date of receipt. If any dividend is paid in NIS, the amount of dividend income will be the U. S. dollar amount of the dividend calculated
by reference to the exchange rate in effect on the date of receipt, regardless of whether the payment is in fact converted into U. S. dollars.
If the dividend is converted into U. S. dollars on the date of receipt, a U. S. Holder should not be required to recognize foreign currency
gain or loss in respect of the dividend income. A U. S. Holder may have foreign currency gain or loss if the dividend is converted into
U. S. dollars after the date of receipt. Such gain or loss will generally be treated as U. S.-source ordinary income or loss.

Dividend income will include any amounts withheld in respect of
Israeli