Company: RGNT
Filing Date: 2025-01-27
Form Type: DRS/A
Source: 0001213900-25-006676
Chunk: 209

Company: REGENTIS BIOMATERIALS LTD.
Filing Date: 2025-01-27
Form: DRS/A
Chunk 209
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 Preferred
Enterprise is located in a certain development zone. As of January 1, 2017, the definition for “Special Preferred Enterprise”
includes less stringent conditions.

As of January 1, 2014, dividends
paid out of income attributed to a “Preferred Income” as defined in Section 51 of the law, derived from a Preferred Enterprise
or to a Special Preferred Enterprise are subject to withholding tax at source at the rate of 20%.

However, dividends paid to
an Israeli company, are not subject to any tax withholding.

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A distribution of dividends
to non-Israeli (individuals or companies) will be subjected to tax withholding at a rate of 20%, or lower rates if provided under an
applicable tax treaty (subject to the receipt in advance of a valid certificate from the Israel Tax Authority allowing for a reduced
tax rate).

New Tax benefits under the 2017 Amendment

The 2017 Amendment was enacted
as part of the Economic Efficiency Law that was published on December 29, 2016, and is effective as of January 1, 2017.

The 2017 Amendment provides
new tax benefits for two types of “Technology Enterprises”, as described below, and is in addition to the other existing
tax beneficial programs under the Investment Law.

The 2017 Amendment provides
that a technology company satisfying certain conditions will qualify as a “Preferred Technology Enterprise” and will thereby
enjoy a reduced corporate tax rate of 12% on income that qualifies as “Preferred Technology Income”, as defined in the Investment
Law. The tax rate is further reduced to 7.5% for a Preferred Technology Enterprise located in development zone A. In addition, a Preferred
Technology Company will enjoy a reduced corporate tax rate of 12% on the capital gain derived from the sale of certain “Benefitted
Intangible Assets” (as defined in the Investment Law) to a related foreign company if the Benefitted Intangible Assets were acquired
from a foreign company on or after January 1, 2017 for at least NIS 200 million, and the sale receives prior approval from the National
Authority for Technological Innovation (referred to as NATI).

The 2017 Amendment further
provides that a technology company satisfying certain conditions (group turnover of at least NIS 10 billion) will qualify as a “Special
Preferred Technology Enterprise” and will thereby enjoy a reduced corporate tax rate of 6% on “