NOTE 15 INCOME TAX
The Company files its income tax report in the state of Israel and is subject to taxation laws applicable in Israel. | A.
| On July 30, 2013, the Israeli parliament approved the Law for the Change in National Priorities (Legislative Amendments to Achieve Budgetary Goals for 2013 and 2014) 2013 (hereinafter the “Law for the Change in National Priorities”), which, among other things increased the standard Israeli corporate income tax rate from 25% to 26.5% effective as of January 1, 2014. | On January 4, 2016, the Israeli parliament passed the Law for Amendment of the Income Tax Ordinance No. 216, which, among other things reduced the standard Israeli corporate income tax rate from 26.5% to 25% effective as of January 2016. In December 2016, the Israeli parliament passed the Economic Efficiency Law (Legislative Amendments to Achieve Budget Targets for the 2017 and 2018 Budget), which set a further reduction of corporate tax from 25% to 23%. The provisions of the law included a Temporary Order stipulate that the corporate tax rate in 2017 will be 24%. As a result, the corporate tax rate that will apply in 2017 will be 24% and the corporate tax rate that will take effect from 2018 onwards will be 23% | B.
| The Company has not received final tax assessments since its inception. | | C.
| As of December 31, 2016, the Company has carry forward losses for Israeli income tax purposes of approximately $2.1 million which can be offset against future taxable income for an indefinite period of time. | | D.
| Deferred taxes result primarily from temporary differences in the recognition of certain revenue and expense items for financial and income tax reporting purposes. Significant components of the Company's future tax assets are as follows: | | | | Year ended December 31 | | | | | 2016 | | 2015 | | 2014 | | | Composition of deferred tax assets: | | US Dollars | | | | | | | | | | | | Provision for vacation | | | 1,216 | | | 943 | | | 2,675 | | | Non capital loss carry forwards | | | 530,306 | | | 445,741 | | | 292,000 | | | Valuation allowance | | | (531,522) | | | (446,684) | | | (294,675) | | | | | | - | | | - | | | - | |
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