1E9Ct5D

Engaged mainly in the field of renewable energy.Preferred IncomeThe Preferred Income is the gross income of a Preferred Enterprise (notincluding discounts) which was produced or which accrued during the course ofbusiness activities of the enterprise in Israel, as follows:Income from products manufactured in Israel, including componentsmanufactured by subcontractors. Income derived from natural resources(Gas, Minerals, Oil) would not be calculated as part of the Preferred Income.Income from the sale of semiconductors manufactured by independentsubcontractors, as long as the IP belongs to the Preferred Enterprise.Income derived from royalties for the use, or the right to use, a patent orknowhow which was developed by the Preferred Enterprise.Income derived from industrial research and development made for a foreignresident, as long as an approval of the head of the R&D center has beenprovided.Tax BenefitsPreferred Enterprise is eligible for tax benefits for each tax year on which it hasfulfilled a 25% export condition.Investments IncentivesCorporate Income Tax of a Preferred Enterprise is 6% if the enterprise is locatedin "Priority Area A", and 12% if it is located in other regions.However, a transitory provision for the years 2011 to 2014 determine thefollowing tax rate as described in the following table (ordinary tax rate is shownfor convenience):Tax Year Priority Area A Other Areas Ordinary Tax Rate2011 10% 15% 24%2012 10% 15% 25%2013 7% 12.5% 25%2014 7% 12.5% 25%2015 6% 12% 25%