Company: DRTSW
Filing Date: 2025-03-12
Form Type: 20-F
Source: 0001213900-25-023187
Chunk: 255

Company: Alpha Tau Medical Ltd.
Filing Date: 2025-03-12
Form: 20-F
Item: Item 10
Chunk 255
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 partnerships and other transparent
entities, individuals under the tax regime for “new immigrants” or “returning residents” and other taxpayers who
are subject to special tax regimes not covered in this discussion. To the extent that the discussion is based on new tax legislation that
has not yet been subject to judicial or administrative interpretation, we cannot assure you that the appropriate tax authorities or the
courts will accept the views expressed in this discussion. The discussion below is subject to change, including due to amendments under
Israeli law or changes to the applicable judicial or administrative interpretations of Israeli law, which change could affect the tax
consequences described below.

General corporate tax structure
in Israel

Israeli resident companies
are generally subject to corporate tax. Since 2018, the corporate tax rate has been 23%. However, the effective tax rate payable by a
company that derives income from a Preferred Enterprise, a Special Preferred Enterprise, a Preferred Technology Enterprise or a Special
Preferred Technology Enterprise (as discussed below) may be considerably less. Capital gains derived by an Israeli company are generally
subject to the prevailing regular corporate tax rate.

Law for the Encouragement
of Industry (Taxes), 5729-1969

The Law for the Encouragement
of Industry (Taxes), 5729-1969, generally referred to as the “ Industry Encouragement Law”, provides several tax benefits for
“ Industrial Companies.” We believe that we currently qualify as an Industrial Company within the meaning of the Industry Encouragement
Law.

The Industry Encouragement
Law defines an “ Industrial Company” as an Israeli resident-company, incorporated in Israel, of which 90% or more of its income
in any tax year, other than income from certain government loans, is derived from an “ Industrial Enterprise” owned by it and
located in Israel or in the “ Area”, in accordance with the definition under section 3A of the Israeli Income Tax Ordinance
(New Version) 1961 (the “ Ordinance”). An “ Industrial Enterprise” is defined as an enterprise which is held by
an Industrial Company whose principal activity in a given tax year is industrial production.

The following are the main
tax benefits currently available to Industrial Companies:

  Amortization of the cost of purchased patent, rights to use a patent, and know-how that were purchased in good faith and are used for the development or advancement of the Industrial Enterprise...  
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