Company: DRTSW
Filing Date: 2025-03-12
Form Type: 20-F
Source: 0001213900-25-023187
Chunk: 259

Company: Alpha Tau Medical Ltd.
Filing Date: 2025-03-12
Form: 20-F
Item: Item 10
Chunk 259
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 6% on “ Preferred Technology Income” regardless of the company’s geographic location
within Israel. In addition, a Special Preferred Technology Enterprise will enjoy a reduced corporate tax rate of 6% on capital gain derived
from the sale of certain “ Benefitted Intangible Assets” to a related foreign company if the Benefitted Intangible Assets were
either developed by the Special Preferred Enterprise or acquired from a foreign company on or after January 1, 2017, and the sale received
prior approval from the Israel Innovation Authority. A Special Preferred Technology Enterprise that acquires Benefitted Intangible Assets
from a foreign company for more than NIS 500 million will be eligible for these benefits for at least ten years, subject to certain approvals
as specified in the Investment Law.

Dividends distributed to Israeli
shareholders by a Preferred Technology Enterprise or a Special Preferred Technology Enterprise, paid out of Preferred Technology Income,
are generally subject to withholding tax at source at the rate of 20% (in the case of non-Israeli shareholders-subject to the receipt
in advance of a valid certificate from the ITA allowing for a reduced tax rate, 20% or such lower rate as may be provided in an applicable
tax treaty). However, if such dividends are paid to an Israeli company, no tax is required to be withheld (although, if such dividends
are subsequently distributed to individuals or a non-Israeli company, the aforesaid will apply). If such dividends are distributed to
a foreign company that holds solely or together with other foreign companies 90% or more in the Israeli company and other conditions are
met, the withholding tax rate will be 4% (or a lower rate under a tax treaty, if applicable, subject to the receipt in advance of a valid
certificate from the ITA allowing for a reduced tax rate).

On January 15,
2020, we received a Tax Ruling from the Israel Tax Authority regarding our entitlement to tax benefits as a Preferred Technological Enterprise
subject to the compliance with the conditions settled in such Tax Ruling and in the Investment Law. The Tax Ruling is valid from 2020
until tax year 2024 (inclusive). There is no assurance that we will continue to meet all the terms and conditions required under the Tax
Ruling and the Investment Law that will allow us to enjoy any tax benefits under the Investment Law.

We believe that we may be
eligible to the tax benefits under the 2017 Amendment.

Taxation of our shareholders

Capital