v2.4.1.9
TAXES ON INCOME (Details 5) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Dec. 31, 2013
Dec. 31, 2012
Income Taxes [Line Items]      
Income before taxes, as reported in the consolidated statements of income $ 18,873us-gaap_IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments $ 18,431us-gaap_IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments $ 16,554us-gaap_IncomeLossFromContinuingOperationsBeforeIncomeTaxesMinorityInterestAndIncomeLossFromEquityMethodInvestments
Statutory tax rate 26.50%us-gaap_EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate 25.00%us-gaap_EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate 25.00%us-gaap_EffectiveIncomeTaxRateReconciliationAtFederalStatutoryIncomeTaxRate
Theoretical tax expenses on the above amount at the Israeli statutory tax rate 5,001us-gaap_IncomeTaxReconciliationStateAndLocalIncomeTaxes 4,609us-gaap_IncomeTaxReconciliationStateAndLocalIncomeTaxes 4,139us-gaap_IncomeTaxReconciliationStateAndLocalIncomeTaxes
Tax adjustment in respect of different tax rates 80us-gaap_IncomeTaxReconciliationOtherAdjustments 484us-gaap_IncomeTaxReconciliationOtherAdjustments 444us-gaap_IncomeTaxReconciliationOtherAdjustments
Deferred taxes on losses for which full valuation allowance was provided in the past 236mgic_IncomeTaxReconciliationDeferredTaxOnLosses (304)mgic_IncomeTaxReconciliationDeferredTaxOnLosses 651mgic_IncomeTaxReconciliationDeferredTaxOnLosses
Changes in valuation allowance 0us-gaap_IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance 0us-gaap_IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance (2,003)us-gaap_IncomeTaxReconciliationChangeInDeferredTaxAssetsValuationAllowance
Tax benefits in respect of prior years, net (516)us-gaap_IncomeTaxReconciliationPriorYearIncomeTaxes 203us-gaap_IncomeTaxReconciliationPriorYearIncomeTaxes (1,126)us-gaap_IncomeTaxReconciliationPriorYearIncomeTaxes [1]
Nondeductible expenses 82us-gaap_IncomeTaxReconciliationNondeductibleExpense 95us-gaap_IncomeTaxReconciliationNondeductibleExpense 20us-gaap_IncomeTaxReconciliationNondeductibleExpense
Uncertain tax position and other differences (2,576)mgic_IncomeTaxReconciliationUncertainTaxPositionAndOtherDifferences (3,512)mgic_IncomeTaxReconciliationUncertainTaxPositionAndOtherDifferences (2,031)mgic_IncomeTaxReconciliationUncertainTaxPositionAndOtherDifferences [2]
Income tax (tax benefit) $ 2,307us-gaap_IncomeTaxExpenseBenefit $ 1,575us-gaap_IncomeTaxExpenseBenefit $ 94us-gaap_IncomeTaxExpenseBenefit
[1] In 2012, the Company reversed its write-off of tax prepayment advances from prior years since the Company believes the utilization of the prepayments is more-likely-than not in the near future.
[2] This amount is mainly comprised of tax provisions reversal due to statute of limitation of prior years' tax assessments amounting to $1,270.