With respect to the tax liability concerning the lease Agreement, the New Company as a
Lessor is subject to Income Tax at the rate of 10% of the rental fee. In this regard, the New
Company has the duty to file tax declaration to the Tax Authority within 10 days from the
Date of receipt of the rental fee in order to calculate and issue a tax payment order. The law
On Tax also stipulates that filing the tax declaration must be mainly based on the lease
Agreement and in accordance with standard rental fee. However, in the case that the
Amount in the tax declaration is lower than the standard rental fees or does not reflect the
Actual rental fee, the official have the power to inspect and recalculate the tax pursuant to standard rental fees in order calculate the correct Income Tax.