Company: EVGN
Filing Date: 2025-03-27
Form Type: 20-F
Source: 0001178913-25-001092
Chunk: 275

Company: Evogene Ltd.
Filing Date: 2025-03-27
Form: 20-F
Item: Item 10
Chunk 275
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, and you are encouraged to consult your tax advisor to determine whether and to what extent you will be entitled to this credit.
 
Sale, Exchange or Other Disposition of Ordinary Shares
 
 Subject to the discussion below under “Passive Foreign Investment Company Considerations,” if you are a U.S. Holder, you generally will recognize an amount of gain or loss on the sale, exchange or other disposition of our ordinary shares equal to the difference between the amount realized on such sale, exchange or other disposition and your tax basis in our ordinary shares, and such gain or loss will be capital gain or loss. The tax basis in an ordinary share generally will equal the cost of such ordinary share. If you are a non-corporate U.S. Holder, capital gain from the sale, exchange or other disposition of ordinary shares generally will be eligible for a preferential rate of taxation applicable to capital gains, if your holding period for such ordinary shares exceeds one year. The deductibility of capital losses for United States federal income tax purposes is subject to limitations under the Code. However, as discussed below, we believe we were not classified as a PFIC for the year ended December 31, 2024. In case we are classified as PFIC special rules may apply as explained below. Any such gain or loss that a U.S. Holder recognizes generally will be treated as U.S. source income or loss for foreign tax credit limitation purposes.
Passive Foreign Investment Company Considerations
 
 Based on certain estimates of our gross income and gross assets and the nature of our business, we believe that we should not be classified as a PFIC for the taxable year ending December 31, 2024.

A non-U.S. corporation will be classified as a PFIC for federal income tax purposes in any taxable year in which, after applying certain look-through rules, either:
 

◾   at least 75% of its gross income is “passive income”; or
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◾   at least 50% of the average quarterly value of its gross assets (which may be determined in part by the market value of our ordinary
         shares, which is subject to change) is attributable to assets that produce “passive income” or are held for the production     
                                                             of passive income.                                                         
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 Passive income for this purpose generally includes dividends, interest, royalties, rents, gains from commodities and securities transactions, the excess of gains over losses from the disposition of assets which produce passive income, and includes amounts derived by reason of the