ANNUAL REPORT AND ACCOUNTS 2015

Plus500 Ltd.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
Note 7 - Taxes on Income:
a. Corporate taxation in Israel
Under the "Tax Burden Distribution Law", corporate tax
rate is 25% as from 2012.
On 5 August 2013, the Law for Change of National
Priorities, 2013 (hereinafter - the Law) was published
in Reshumot (the Israeli government official gazette),
enacting, raising the corporate tax rate beginning in
2014 and thereafter to 26.5% (instead of 25%).
On 5 January 2016, the Law for the Amendment to the
Income Tax Ordinance (No. 216), 2016 was published
in the official gazette. The said law stipulated the
reduction of the rate of corporate tax from 26.5% to
25% commencing tax year 2016. As a result of the
decrease in tax rate, it is expected that the Group will
not have a material effect on its deferred tax assets.
c. Deferred tax asset
The Deferred tax assets in 2015 and 2014 in total
amount of $173 thousands and $495 thousands,
respectively, is presented among "non-current assets",
and computed at tax rate of 26.5%.
The Deferred tax assets which will be settled in 2016
are in total amount of $99 thousands.
The deferred tax assets in the financial statements,
caused by payroll expenses of share-based
compensation plan (see note 9).
b. Corporate taxation in Subsidiaries
The UK subsidiary is assessed for tax under the tax
laws in UK. The principal tax rates applicable to the UK
Subsidiary incorporated in the UK is 20.3% (January
–March 2015 – tax rate of 21%, April 2015 through
December 2015 tax rate of 20%).
The CY subsidiary is assessed for tax under the tax laws
in Cyprus. The principal tax rates applicable to the CY
Subsidiary incorporated in Cyprus is 12.5%.
Other subsidiaries in the Group do not have significant
taxable income and the overall effect of the income
of those subsidiaries on the Group's tax expenses is
immaterial.
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Plus500 Ltd. 2015 Annual Report