Taxes on Income
|12 Months Ended|
Dec. 31, 2021
|Income Tax Disclosure [Abstract]|
|TAXES ON INCOME||
The Company is assessed for tax purposes on an unconsolidated basis. Each of the Company’s subsidiaries is subject to the tax rules prevailing in its country of incorporation.
The Company is subject to Israeli corporate tax rate of 23% for the years ended December 31, 2021 and 2020.
The US subsidiary is subject to U.S. federal tax rate of 21% for the years ended December 31, 2021 and 2020.
The China subsidiary is subject to China tax rate of 2.5% up to taxable income of one million RMB, 10% on taxable income between one million RMB to three million RMB and 25% on taxable income higher than three million RMB, for the year ended December 31, 2021.
As of December 31, 2021, the Company has an accumulated tax loss carryforward of approximately $61,361 in Israel, which may be carried forward and offset against taxable income in the future for an indefinite period.
The Company received final tax assessments in Israel through the year ended December 31, 2015.
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.
Significant components of the Company’s deferred tax assets are as follows:
As of December 31, 2021, the Company has provided valuation allowances of $14,207 in respect of deferred tax assets resulting from tax loss carryforward and other temporary differences. Management currently believes that because the Company has a history of losses, it is more likely than not that the deferred tax regarding the loss carryforward and other temporary differences will not be realized in the foreseeable future.
The components of loss before tax and a reconciliation of the Company’s tax expense to the Company’s theoretical statutory tax benefit is as follows:
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/disclosureRef