Company: TSEM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001178913-25-001537
Chunk: 313

Company: TOWER SEMICONDUCTOR LTD
Filing Date: 2025-04-30
Form: 20-F
Item: Item 19
Chunk 313
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 Balance as of January 1, 2023                               $                              8,490  
  Additions for tax positions of current year                                                  727  
  Reduction due to statute of limitations of prior years                                         -  
  Balance as of December 31, 2023                             $                              9,217  

  Details                                                     Unrecognized tax benefits             
  Balance as of January 1, 2022                               $                              7,763  
  Additions for tax positions of current year                                                  727  
  Reduction due to statute of limitations of prior years                                         -  
  Balance as of December 31, 2022                             $                              8,490  

E. Effective Income Tax

The reconciliation of the Israeli statutory income tax rate to the effective tax rate for the years ended December 31, 2024, 2023 and 2022:

  Details                                                                                        2024                    2023                    2022                
 ─────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Tax expense computed at statutory rates, see (*) below                                         $           50,008      $          134,514      $           67,154  
  Effect of different tax rates in different jurisdictions and Preferred Enterprise Benefit                ( 36,588                ( 89,487                ( 46,012  
  Change in valuation allowance                                                                              11,375                   2,697                   5,911  
  Permanent differences and other, net                                                                     ( 14,590                  17,588                 ( 1,551  
  Income tax expense                                                                             $           10,205      $           65,312      $           25,502  

(*) The tax expense was computed based on the Israeli statutory corporate income tax rate of23%.

F. Net Operating Loss Carryforward

As of December 31, 2024, Tower had no net operating loss carryforward.

As of December 31, 2024, Tower US Holdings had U. S. federal net operating loss carryforwards of approximately $29,000of which approximately $21,000does not expire and is subject to an annualtaxable income limitation of 80%. The remaining federal tax loss carryforward of $8,000will expire in 2028, unless previously utilized.

As of December 31, 2024, Tower US Holdings had a California state net operating loss carryforward of approximately $11,000. The state tax loss carryforward will begin to