SEC Filings

20-F
TOWER SEMICONDUCTOR LTD filed this Form 20-F on 04/10/2017
Entire Document
 

 
TOWER SEMICONDUCTOR LTD. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(dollars in thousands, except per share data)
NOTE 20      -       INCOME TAXES
 
A.
Approved Enterprise Status

Substantially all of Tower’s existing facilities and other capital investments have been granted approved enterprise status, as provided by the Investments Law.

Pursuant to the Investments Law and the approval certificates, Tower’s income is taxed at a rate of 20% in 2016. The portion of Tower’s taxable income that is not attributable to approved enterprise status is taxed at a rate of 25% in 2016 (“Regular Company Tax”).

The tax benefits are also conditioned upon fulfillment of the requirements stipulated by the letter of approval regarding Tower's facilities and other capital investments' approved enterprise status (“Ktav Ishur”), as well as by the Investments Law and the regulations promulgated thereunder, as well as the criteria set forth in the certificates of approval.

B.
Income Tax Provision
 
      The company’s income tax provision is as follows:
 
   
Year Ended December 31,
 
   
2016
   
2015
   
2014
 
Current tax expense (benefit):
                 
Foreign (*)(**)
 
$
5,948
   
$
(8,473
)
 
$
2,814
 
Deferred tax expense (benefit):
                       
Foreign(*)
   
(4,516
)
   
(3,805
)
   
(27,556
)
Income tax expense (benefit)
 
$
1,432
   
$
(12,278
)
 
$
(24,742
)
 
(*) Foreign are considered provisions for Tower’s subsidiaries outside Israel.
 
(**) Includes changes in unrecognized tax benefit, see D below.
 
   
Year Ended December 31,
 
   
2016
   
2015
   
2014
 
Profit (loss) before taxes:
                 
Domestic
 
$
168,668
   
$
(59,797
)
 
$
78,677
 
Foreign
   
41,930
     
18,392
     
(104,791
)
Total profit (loss) before taxes
 
$
210,598
   
$
(41,405
)
 
$
(26,114
)
 

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