Immediate Report – Extension of the validity of the tax ruling
Bezeq - The Israel Telecommunications Corp. Ltd.
(the “Company”)
December 4, 2024
Attn.
Israel Securities Authority
The Tel Aviv Stock Exchange Ltd.
Immediate Report – Extension of the validity of the tax ruling
Further to the Company’s Immediate Report of September 18, 2016, regarding the tax ruling in an agreement that includes preliminary approval of the Israel Tax Authority for tax purposes for the merger of the subsidiary yes Television and Communication Services Ltd. ("yes") with and into the Company, in accordance with Section 103b of the Income Tax Ordinance, and the Company's updates in its reports regarding the extension of the approval that was valid until December 31,2024 (the “Tax Ruling"), an Immediate Report is hereby issued that on December 3, 2024, the Company received a letter from the Israel Tax Authority, which, at the Company’s request, extends the validity of the Tax Ruling by one year, meaning until December 31, 2025.
It should be noted that the letter from the Israel Tax Authority includes a statement similar to that in its letters from previous years, according to which, due to the fact that there were no material developments regarding cancellation of the structural separation between the Company and yes, and the long time that has elapsed since the Tax Ruling was issued, the Israel Tax Authority will consider not extending the validity of the Tax Ruling beyond December 31, 2025, provided that there are no material developments in 2025 regarding cancellation of the structural separation. The Company believes that it is entitled to an extension of the Israel Tax Authority’s approval in accordance with the terms of the Tax Ruling, and in any event, even if the validity of the Tax Ruling is not extended, the Company will be able to apply for a new tax ruling in place of the Tax Ruling. It is further noted that the Company is continuing to work with the regulatory entities to cancel the structural separation and that according to the notice published by the Ministry of Communications, assessment of the need for structural separation in the Company is part of the additional requirements in the work plan of the Ministry of Communications for 2024 (for further information, see the update to section 1.7.3 in the Update to Chapter A (Description of Company Operations) for the third quarter of 2024.)
On this matter, see also Note 7.2.1 to the Company's annual consolidated financial statements for 2023.
Yours sincerely,
“Bezeq” The Israel Telecommunication Corp Limited
The above information constitutes a translation of the Immediate Report published by the Company. The Hebrew version was submitted by the Company to the relevant authorities pursuant to Israeli law, and represents the binding version and the only one having legal effect. This translation was prepared for convenience purposes only.