Company: PERI
Filing Date: 2025-03-25
Form Type: 20-F
Source: 0001178913-25-001021
Chunk: 74

Company: Perion Network Ltd.
Filing Date: 2025-03-25
Form: 20-F
Item: Item 5
Chunk 74
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73 applies to “ Preferred Technology Enterprise” that meet certain
conditions, including, inter-alia, the following:

  A company’s average R& D expenses in the three years prior to the current tax year must be greater than or equal to 7% of  

  A company must also satisfy one of the following conditions: (1) at least 20% of the workforce (or at least 200 employees) are employees   

  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 “ Competitive Enterprise” as described under the Investment Law.  

  Total annual consolidated revenue is below NIS10 billion (approximately $2.7 billion).  

A “ Special Preferred Technology Enterprise” is an enterprise
that meets conditions one and two above, and in addition is a part of a group of companies that have total annual consolidated revenue
in excess of NIS 10 billion (approximately $2.7 billion).

A “ Preferred Technology Enterprise” satisfying the
required conditions will thereby enjoy a reduced corporate tax rate of 12% on income that qualifies as “ Preferred Technology Income”,
as defined in the Investment Law. The tax rate is further reduced to 7.5% for a Preferred Technology Enterprise located in Development
Area A. These corporate tax rates shall apply only with respect to the portion of intellectual property developed in Israel unless certain
exceptions apply. In addition, a Preferred Technology Enterprise will enjoy a reduced corporate tax rate of 12% on capital gain derived
from the sale of certain “ Benefitted Intangible Assets” (as defined in the Investment Law) to a related foreign company if
the Benefitted Intangible Assets were acquired from a foreign company on or after January 1, 2017 for at least NIS 200 million (approximately
$55 million), and the sale receives prior approval from the National Authority for Technological Innovation (previously known as the Israeli
Office of the Chief Scientist), to which we refer as the IIA.

74

A “ Special Preferred Technology Enterprise” satisfying
the required conditions, will thereby enjoy a reduced corporate tax rate of 6% on “ Preferred Technology Income” regardless
of the company’s geographic location within Israel. In addition, a Special Preferred Technology Enterprise will enjoy a reduced
corporate