Taxes on Income
|12 Months Ended|
Dec. 31, 2015
|Taxes on Income [Abstract]|
|TAXES ON INCOME||
Taxable income is subject to the Israeli corporate tax at the rate as follows: 2013 – 25%, 2014 and 2015 – 26.5%. On January 5, 2016, the Israeli parliament approved the reduction of the corporate tax rate to 25%, starting from January 1, 2016. Israeli companies are generally subject to Capital Gains Tax at the corporate tax rate.
As of December 31, 2015, the Company has accumulated losses for tax purposes in the amount of $6 million which may be carried forward and offset against taxable income for an indefinite period.
As of December 31, 2015, the Company's subsidiary has accumulated losses for tax purposes in the amount of $4.4 million which may be carried forward and offset against taxable income for an indefinite period.
For the years ended December 31, 2013, 2014 and 2015, the Company did not have any unrecognized tax benefits and no interest and penalties related to unrecognized tax benefits had been accrued. The Company does not expect that the amount of unrecognized tax benefits will change significantly within the next 12 months.
Tax reports filed by the Company and the Company's subsidiary through the year ended December 31, 2009 are considered final.
Significant components of the Company's deferred tax assets are as follows:
The net change in the total valuation allowance for the year ended December 31, 2015 primarily relates to an increase in deferred taxes on NOL's for which a full valuation allowance was recorded. In assessing the likelihood that deferred tax assets will be realized, management considers whether it is more likely than not that some or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets depends on the generation of future taxable income during the periods in which those temporary differences and tax loss carryforwards are deductible.
The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.
Reference 1: http://www.xbrl.org/2003/role/presentationRef