Company: GAUZ
Filing Date: 2025-03-11
Form Type: 20-F
Source: 0001213900-25-022437
Chunk: 126

Company: Gauzy Ltd.
Filing Date: 2025-03-11
Form: 20-F
Item: Item 10
Chunk 126
---
 or other Disposition of Ordinary Shares

Except as provided under
the PFIC rules described below under “ Passive Foreign Investment Companies,” upon the sale, exchange or other
disposition of our ordinary shares, a U. S. Holder will recognize capital gain or loss in an amount equal to the difference between
such U. S. Holder’s tax basis for the ordinary shares, determined in U. S. dollars, and the U. S. dollar value of the amount
realized on the disposition (or its U. S. dollar equivalent determined by reference to the spot rate of exchange on the date of
disposition, if the amount realized is denominated in a foreign currency). The gain or loss realized on the sale, exchange or other
disposition of ordinary shares will be long-term capital gain or loss if the U. S. Holder has a holding period of more than one year
at the time of the disposition. Individuals who recognize long-term capital gains may be taxed on such gains at reduced rates of
tax. The deduction of capital losses is subject to various limitations. U. S.
Holders should consult their own tax advisors regarding the U. S. federal income tax consequences of receiving currency other than
U. S. dollars upon the disposition of their ordinary shares.

Passive Foreign
Investment Companies

Special U. S. federal income
tax laws apply to U. S. taxpayers who own shares of a corporation that is a PFIC. We will be treated as a PFIC for U. S. federal income
tax purposes for any taxable year that either:

  75% or more of our gross                                                                                                           

  At least 50% of our assets                                                                                                             
  generally determined on the basis of a quarterly average and based upon fair market value (including our pro rata share of the assets  
  of any company in which we are considered to own 25% or more of the shares by value) are held for the production of, or produce,       
  passive income.                                                                                                                        
 ─────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────

For this purpose, passive
income generally consists of rents, dividends, interest, royalties, gains from the disposition of passive assets and gains from commodities
and securities transactions. Generally, cash is treated as generating passive income and is therefore treated as a passive asset for
purposes of the PFIC rules.

Based on our market capitalization
and the composition of our income, assets and operations