Company: PERI
Filing Date: 2025-03-25
Form Type: 20-F
Source: 0001178913-25-001021
Chunk: 81

Company: Perion Network Ltd.
Filing Date: 2025-03-25
Form: 20-F
Item: Item 5
Chunk 81
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 in the previous sentence) are met. The aforementioned rates under the United States-Israel Tax Treaty would not apply if the dividend
income is derived through a permanent establishment of the U. S. resident in Israel.

If the dividend is attributable partly to income derived from a
Preferred Enterprise, and partly to other sources of income, the withholding rate will be a blended rate reflecting the relative portions
of the two types of income. U. S. residents (for purposes of the United States-Israel Tax Treaty) who are subject to Israeli withholding
tax on a dividend may be entitled to a credit or deduction for United States federal income tax purposes up to the amount of the taxes
withheld, subject to detailed rules contained in U. S. tax law.

We cannot assure you that we will designate the profits that we
may distribute in a way that will reduce shareholders’ tax liability.

77

A non-Israeli resident who receives dividends from which tax was
withheld is generally exempt from the obligation to file tax returns in Israel in respect of such income, provided, inter alia, that (i)
such income was not derived from a business conducted in Israel by the taxpayer, (ii) the taxpayer has no other taxable sources of income
in Israel with respect to which a tax return is required to be filed and (iii) in the case of individuals, the taxpayer is not obliged
to pay excess tax (as further explained below).

Excess Tax. Individuals
who are subject to tax in Israel (whether any such individual is an Israeli resident or non-Israeli resident) are also subject to an additional
tax at a rate of 3% on annual income exceeding NIS 721,560 (approximately $198 thousand) for 2024 (which amount is generally linked to
the annual change in the Israeli consumer price index, with the exception that based on Israeli new legislation such amount, and certain
other statutory amounts will not be linked to the Israeli consumer price index for the years 2025-2027), including, but not limited to,
dividends, interest and capital gain. According to new legislation, in effect as of January 1, 2025, an additional2% excess tax is imposed on Capital-Sourced Income (defined as income from any source other than employment income, business income or
income from “personal effort”), to the extent that the Individual’s Capital Sourced Income exceeds the specified threshold
of NIS 721,560 (and regardless of the employment/business income amount of such individual