| A. |
Composition:
|
|
Year ended December 31
|
||||||||||||||||
|
2 0 1 7
|
2 0 1 6
|
2 0 1 5
|
2 0 1 7
|
|||||||||||||
|
NIS
|
NIS
|
NIS
|
US Dollars
|
|||||||||||||
|
Current taxes:
|
||||||||||||||||
|
Current taxes
|
3,918
|
4,067
|
5,745
|
1,130
|
||||||||||||
|
Taxes in respect of prior years
|
141
|
-
|
(69
|
)
|
41
|
|||||||||||
|
4,059
|
4,067
|
5,676
|
1,171
|
|||||||||||||
|
Deferred taxes
|
1,851
|
1,260
|
(3,110
|
)
|
534
|
|||||||||||
|
5,910
|
5,327
|
2,566
|
1,705
|
|||||||||||||
| B. |
Reconciliation of the statutory tax rate to the effective tax rate:
|
|
Year ended December 31,
|
||||||||||||||||
|
2 0 1 7
|
2 0 1 6
|
2 0 1 5
|
2 0 1 7
|
|||||||||||||
|
NIS
|
NIS
|
NIS
|
US Dollars
|
|||||||||||||
|
Income before Income taxes
|
30,933
|
16,179
|
9,410
|
8,921
|
||||||||||||
|
Statutory tax rate
|
24
|
%
|
25
|
%
|
26.5
|
%
|
24
|
%
|
||||||||
|
Tax computed by statutory tax rate
|
7,424
|
4,044
|
2,494
|
2,141
|
||||||||||||
|
Tax increments (savings) due to:
|
||||||||||||||||
|
Non-deductible expenses
|
51
|
70
|
29
|
15
|
||||||||||||
|
Tax exempt Income
|
(343
|
)
|
(33
|
)
|
(98
|
)
|
(99
|
)
|
||||||||
|
Profit or loss for tax for which deferred taxes were not provided
|
(1,196
|
)
|
1,198
|
-
|
(345
|
)
|
||||||||||
|
Changes in tax rates
|
-
|
88
|
-
|
-
|
||||||||||||
|
Temporary differences for which deferred taxes were not provided
|
(132
|
)
|
-
|
170
|
(38
|
)
|
||||||||||
|
Previous year taxes
|
141
|
-
|
(69
|
)
|
40
|
|||||||||||
|
Other
|
(35
|
)
|
(40
|
)
|
40
|
(9
|
)
|
|||||||||
|
5,910
|
5,327
|
2,566
|
1,705
|
|||||||||||||
| C. |
Deferred Taxes:
|
|
January
|
December
|
December
|
||||||||||||||
| 1, 2017 |
Change
|
31, 2017 | 31, 2017 | |||||||||||||
|
NIS
|
NIS
|
NIS
|
US Dollars
|
|||||||||||||
|
Deferred taxes arise from the following:
|
||||||||||||||||
|
Financial assets carried at fair value through profit or loss
|
67
|
(842
|
)
|
(775
|
)
|
(223
|
)
|
|||||||||
|
Employees benefits
|
352
|
43
|
395
|
114
|
||||||||||||
|
Allowance for doubtful accounts
|
516
|
32
|
548
|
158
|
||||||||||||
|
935
|
(767
|
)
|
168
|
49
|
||||||||||||
|
Carry forward tax losses
|
1,419
|
(1,084
|
)
|
335
|
96
|
|||||||||||
|
2,354
|
(1,851
|
)
|
503
|
145
|
||||||||||||
|
January
|
December
|
December
|
||||||||||||||
| 1, 2016 |
Change
|
31, 2016 | 31, 2016 | |||||||||||||
|
NIS
|
NIS
|
NIS
|
US Dollars
|
|||||||||||||
|
Deferred taxes arise from the following:
|
||||||||||||||||
|
Financial assets carried at fair value through profit or loss
|
(88
|
)
|
155
|
67
|
17
|
|||||||||||
|
Employees benefits
|
283
|
69
|
352
|
92
|
||||||||||||
|
Allowance for doubtful accounts
|
913
|
(397
|
)
|
516
|
134
|
|||||||||||
|
1,108
|
(173
|
)
|
935
|
243
|
||||||||||||
|
Carry forward tax losses
|
2,507
|
(1,088
|
)
|
1,419
|
369
|
|||||||||||
|
3,615
|
(1,261
|
)
|
2,354
|
612
|
||||||||||||
| C. |
Additional Information:
|
| (1) |
Pursuant to the provisions of Section 145 to the Income Tax Ordinance, tax assessments through the year 2013 are considered final, subject to certain limitations.
|
| (2) |
At the beginning of January 2016, the Law for the Amendment of the Income Tax Ordinance was published, enacting a reduction of corporate tax rate beginning on January 1 2016 and thereafter, from 26.5% to 25%. The new corporate tax rate applied to income that was earned or generated as from January 1, 2016.
|
| (3) |
In December 2016, the Economic Efficiency Law (Legislative Amendments for Implementing the Economic Policy for the 2017 and 2018 Budget Year), 2016 was published, introducing a reduction in corporate tax rate as from January 1, 2017 to a rate of 24% (instead of 25%) and from January 1, 2018 to a rate of 23%.
|