Company: PERI
Filing Date: 2025-03-25
Form Type: 20-F
Source: 0001178913-25-001021
Chunk: 75

Company: Perion Network Ltd.
Filing Date: 2025-03-25
Form: 20-F
Item: Item 5
Chunk 75
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 tax rate of 6% on capital gain derived from the sale of certain “ Benefitted Intangible Assets” to a related foreign
company if the Benefitted Intangible Assets were either developed by the Special Preferred Technology Enterprise or acquired from a foreign
company on or after January 1, 2017, and the sale received prior approval from IIA. A Special Preferred Technological Enterprise that
acquires Benefitted Intangible Assets from a foreign company for more than NIS 500 million (approximately $140 million) will be eligible
for these benefits for at least ten years, subject to certain approvals as specified in the Investment Law.

Dividends distributed to Israeli shareholders by a Preferred Technological
Enterprise or a Special Preferred Technology Enterprise, paid out of Preferred Technology Income, are generally subject to withholding
tax at source at the rate of 20% (in the case of non-Israeli shareholders - subject to the receipt in advance of a valid certificate from
the ITA allowing for such 20% reduced withholding tax rate or such lower rate as may be provided in an applicable tax treaty). However,
if such dividends are paid to an Israeli company, no tax is required to be withheld (although, if such dividends are subsequently distributed
to individuals or a non-Israeli company the aforesaid will apply). If such dividends are distributed to a parent foreign company that
holds solely or together with other foreign companies at least 90% of the shares of the distributing company and other conditions are
met, the withholding rate will be 4% (or a lower rate under a tax treaty, if applicable, subject to the receipt in advance of a valid
certificate from the ITA allowing for a reduced tax rate).

We believe that we and our Israeli subsidiary Vidazoo are qualified
as a “ Preferred Technology Enterprise” in 2023 and 2024 and subject to a lower tax rate of 12% according to Amendment 73 to
the Law, as described above.

Law for the Encouragement of Knowledge Intensive Industry (Temporary
Provision), 2023

In July 2023, the Israeli Parliament enacted the Law for the Encouragement
of Knowledge Intensive Industry (Temporary Provision), 2023 (“the Angel’s Law”)
among other stipulations, the Angel’s Law provides certain benefits to companies qualifying for the Preferred Technological Enterprise
status in the form of tax deductions when acquiring other companies, Israeli or foreign. In order to obtain the benefits, the acquiror
and