Company: PERI
Filing Date: 2025-03-25
Form Type: 20-F
Source: 0001178913-25-001021
Chunk: 88

Company: Perion Network Ltd.
Filing Date: 2025-03-25
Form: 20-F
Item: Item 5
Chunk 88
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 taxes and will be treated as foreign-source income. Subject to applicable limitations, some of which vary depending upon the U. S.
Holder’s circumstances, Israeli taxes withheld from dividends on our ordinary shares (at a rate not exceeding the applicable Treaty
rate) generally will be creditable against the U. S. Holder’s U. S. federal income tax liability. The rules governing foreign tax
credits are complex. For example, Treasury regulations provide that, in the absence of an election to apply the benefits of an applicable
income tax treaty, in order for foreign income taxes to be creditable the relevant foreign income tax rules must be consistent with certain
U. S. federal income tax principles, and we have not determined whether the Israeli income tax system meets these requirements. The IRS
has released notices that provide relief from certain of the provisions of the Treasury regulations described above for taxable years
ending before the date that a notice or other guidance withdrawing or modifying the temporary relief is issued (or any later date specified
in such notice or other guidance). In lieu of claiming a non-U. S. tax credit, U. S. Holders may elect to deduct non-U. S. taxes (including
Israeli taxes) in computing their taxable income, subject to applicable limitations. An election to deduct non-U. S. taxes instead of claiming
foreign tax credits applies to all otherwise creditable non-U. S. taxes paid or accrued in the taxable year. U. S. Holders should consult
their tax advisers regarding the creditability or deductibility of Israeli taxes in their particular circumstances.

Sale or Other Taxable Disposition of Ordinary Shares

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

Gain or loss realized on the sale or other taxable disposition
of our ordinary shares will be capital gain or loss and will be long-term capital gain or loss if the U. S. Holder has owned the ordinary
shares for more than one year. The amount of the gain or loss will equal the difference between the U. S. Holder’s tax basis in the
ordinary shares disposed of and the amount realized on the disposition, in each case as determined in U. S. dollars. This gain or loss
will generally be U. S.-source gain or loss for foreign tax credit purposes. The deductibility of capital losses is subject to limitations.
Israeli taxes on capital gains will generally not be eligible for foreign tax credits. U. S. Holders should consult their tax advisers
with respect to