Company: GAUZ
Filing Date: 2025-03-11
Form Type: 20-F
Source: 0001213900-25-022437
Chunk: 128

Company: Gauzy Ltd.
Filing Date: 2025-03-11
Form: 20-F
Item: Item 10
Chunk 128
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 qualified electing fund, or QEF, election for all taxable years that such U. S. Holder
has held the ordinary shares while we are a PFIC, provided that we comply with specified reporting requirements. Instead, each U. S. Holder
who has made such a QEF election is required for each taxable year that we are a PFIC to include in income such U. S. Holder’s pro
rata share of our ordinary earnings as ordinary income and such U. S. Holder’s pro rata share of our net capital gains as long-term
capital gain, regardless of whether we make any distributions of such earnings or gain. In general, a QEF election is effective only
if we make available certain required information. The QEF election is made on a shareholder-by-shareholder basis and generally may be
revoked only with the consent of the IRS. We do not intend to notify U. S. Holders if we believe we will be treated as a PFIC for any
tax year. In addition, we do not intend to furnish U. S. Holders annually with information needed in order to complete IRS Form 8621 and
to make and maintain a valid QEF election for any year in which we or any of our subsidiaries are a PFIC. Therefore, the QEF election
will not be available with respect to our ordinary shares.

In addition, the PFIC rules
described above would not apply if we were a PFIC and a U. S. Holder made a mark-to-market election. A U. S. Holder of our ordinary shares
which are regularly traded on a qualifying exchange, including the Nasdaq, can elect to mark the ordinary shares to market annually, recognizing
as ordinary income or loss each year an amount equal to the difference as of the close of the taxable year between the fair market value
of the ordinary shares and the U. S. Holder’s adjusted tax basis in the ordinary shares. Losses are allowed only to the extent of
net mark-to-market gain previously included income by the U. S. Holder under the election for prior taxable years.

A U. S. Holder that owns (or
is deemed to own) shares in a PFIC during any taxable year of the U. S. Holder generally is required to file an IRS Form 8621 with such
U. S. Holder’s U. S. federal income tax return and provide such other information as the IRS may require. Failure to file IRS Form
8621