Company: PERI
Filing Date: 2025-03-25
Form Type: 20-F
Source: 0001178913-25-001021
Chunk: 76

Company: Perion Network Ltd.
Filing Date: 2025-03-25
Form: 20-F
Item: Item 5
Chunk 76
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 target companies must meet certain criteria, perform certain actions and obtain certain approvals from the government.

75

Law for the Encouragement of Industry (Taxes), 5729-1969

We believe that we, and one of our Israeli subsidiaries, currently
qualify as an “ Industrial Company” within the meaning of the Law for the Encouragement of Industry (Taxes), 5729-1969, or
the Industry Encouragement Law. The Industry Encouragement Law defines an “ Industrial Company” as a company resident of Israel
which was incorporated in Israel, of which 90% or more of its income in any tax year, other than income from certain government loans,
is derived from an “ Industrial Enterprise” owned by it and located in Israel or in the “ Area”, in accordance with
the definition in section 3A of the Ordinance. An “ Industrial Enterprise” is defined as an enterprise whose major activity
in any given tax year is industrial production.

The following corporate tax benefits, among others, are available to Industrial Companies:

  Amortization of the cost of purchased know-how, patents, and right to use patent or know how that were purchased in good faith and       
  are used for the development or promotion of the Industrial Enterprise, over an eight-year period beginning from the year in which such  
  rights were first used;                                                                                                                  
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  Under specified conditions, an election to file consolidated tax returns with additional related Israeli Industrial Companies controlled  

  Deduction of expenses related to a public offering in equal amounts over three years beginning from the year of the offering.  

Eligibility for the benefits under the Industry Encouragement Law
is not subject to receipt of prior approval from any governmental authority. We cannot assure that we qualify or will continue to qualify
as an “ Industrial Company” or that the benefits described above will be available in the future.

Taxation of our Shareholders

Capital Gains Taxes Applicable
to Non-Israeli Resident Shareholders. The Ordinance, generally imposes a capital gains tax on the disposition of capital assets
by non-Israeli tax residents if those assets (i) are located in Israel, (ii) are shares or a right to shares in an Israeli resident corporation,
or (iii) represent, directly or indirectly, rights to assets located in Israel, unless a specific exemption is available or unless a tax
treaty between Israel and