Company: PERI
Filing Date: 2025-03-25
Form Type: 20-F
Source: 0001178913-25-001021
Chunk: 83

Company: Perion Network Ltd.
Filing Date: 2025-03-25
Form: 20-F
Item: Item 5
Chunk 83
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 S. Holder” is a person that is
eligible for the benefits of the Treaty and is, for U. S. federal income tax purposes, a beneficial owner of ordinary shares and:

  a citizen or individual resident of the United States;  

  a corporation, or other entity taxable as a corporation, created or organized in or under the laws of the United States, any state  

  an estate or trust the income of which is subject to U. S. federal income taxation regardless of its source.  

This discussion does not address any U. S. federal taxes (such as
estate or gift taxes) other than income taxes, nor does it address any state, local or non-U. S. tax considerations. U. S. Holders should
consult their tax advisers concerning the U. S. federal, state, local and non-U. S. tax consequences of owning and disposing of our ordinary
shares in their particular circumstances.

78

Passive Foreign Investment Company Rules

In general, a non-U. S.
corporation is a PFIC for any taxable year in which (i) 75% or more of its gross income consists of passive income or (ii) 50% or more
of the value of its assets (generally determined on an average quarterly basis) consists of assets that produce, or are held for the production
of, passive income. For purposes of the above calculations, a non-U. S. corporation that owns (or is treated as owning for U. S. federal
income tax purposes), directly or indirectly, at least 25% by value of the shares or equity interests of another corporation is treated
as if it held its proportionate share of the assets of the other corporation and received directly its proportionate share of the
income of the other corporation. Passive income generally includes dividends, interest, rents, royalties and certain gains. Cash and
marketable securities are generally passive assets for these purposes. Goodwill and other intangible assets are generally characterized
as non-passive or passive assets based on the nature of the income produced in the activity to which the goodwill and other intangible
assets relate.

Because we hold a substantial amount of cash and other
passive assets, our PFIC status for any taxable year generally will depend on the average value of our goodwill and other intangible assets
(as well as the value of our other active assets). If the value of our assets were determined by reference to the sum of our market capitalization
and liabilities, we