Company: TSEM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001178913-25-001537
Chunk: 72

Company: TOWER SEMICONDUCTOR LTD
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 72
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 U. S. GAAP.
The preparation of these financial statements requires us to make estimates, assumptions and judgments that affect the reported amounts
of assets, liabilities, revenue and expenses, as well as related disclosures. We evaluate our estimates, assumptions and judgments on
an ongoing basis. Our estimates, assumptions and judgments are based on historical experience and various other factors that we believe
to be reasonable under the circumstances. Different assumptions and judgments would change the estimates used in the preparation of our
financial statements, which, in turn, could change the results from those reported.

The critical accounting policies used in the preparation of our
consolidated financial statements that we believe were most affected by significant management estimates and judgments are discussed below.
See Note 2 to the consolidated financial statements included elsewhere in this annual report for further information on all significant
accounting policies that we used to prepare our consolidated financial statements.

46

Income Taxes

Our provision for income taxes is affected by income tax in a multinational
tax environment. The income tax provision is an estimate determined based on current enacted tax laws and tax rates at each of our geographic
locations with the use of acceptable allocation methodologies based upon our organizational structure, our operations and business mode
of work, resulting in applicable taxable income attributable to each of the locations we operate in.

For the year ended December 31, 2024, the consolidated provision
for income taxes was $10.2 million, as detailed in Note 18 to our financial statements.

In December 2021, the OECD released Pillar Two model rules, which
impose on large multinational corporations, with revenue above €750 million, a minimum effective corporate income tax rate of 15%
in each jurisdiction in which they operate. As of December 31, 2024, the rules have been partially enacted in certain jurisdictions in
which the Company operates, however they did not impact the Company financial statements, tax payments or liabilities. For all the periods
ended December 31, 2024, the Company complied with the transitional safe harbor rules in each of its jurisdictions and it currently assumes
that it will be able to postpone the application of the rules for periods that will commence after December 31, 2025.

ITEM
6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES

A. DIRECTORS AND SENIOR MANAGEMENT

Set forth below is information regarding our senior management
and directors as of April 15, 2025:

  Officer      Senior Management Name      Age      Title(s)