Company: DRTSW
Filing Date: 2025-03-12
Form Type: 20-F
Source: 0001213900-25-023187
Chunk: 260

Company: Alpha Tau Medical Ltd.
Filing Date: 2025-03-12
Form: 20-F
Item: Item 10
Chunk 260
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 gains taxes applicable
to non-Israeli resident shareholders

A non-Israeli resident (whether
an individual or a corporation) who derives capital gains from the sale of shares in an Israeli resident company that were purchased after
the company was listed for trading on a stock exchange outside of Israel, will generally be exempt from Israeli capital gains tax unless,
among others, the shares were held through a permanent establishment that the non-resident maintains in Israel. If not exempt, a non-Israeli
resident shareholder would generally be subject to tax on capital gain at the ordinary corporate tax rate (23% in 2024), if generated
by a company, or at the rate of 25%, if generated by an individual, or 30%, if generated by an individual who is a “substantial
shareholder” (as defined under the Ordinance), at the time of sale or at any time during the preceding 12-month period (or if the
shareholder claims a deduction for interest and linkage differences expenses in connection with the purchase and holding of such shares).
A “substantial shareholder” is generally a person who alone or together with such person’s relative or another person
who collaborates with such person on a permanent basis based on a contract, holds, directly or indirectly, at least 10% of any of the
“means of control” of the corporation. “ Means of control” generally include, among others, the right to vote,
receive profits, nominate a director or an executive officer, receive assets upon liquidation, or order someone who holds any of the aforesaid
rights how to act, regardless of the source of such right. Individual and corporate shareholders dealing in securities in Israel are taxed
at the tax rates applicable to business income (a corporate tax rate for a corporation (23% in 2024) and a marginal tax rate of up to
47% for an individual in 2024 (excluding surtax as discussed below)), unless contrary provisions in a relevant tax treaty apply. Non-Israeli
corporations will not be entitled to the foregoing exemption if Israeli residents: (i) have a controlling interest more than 25% in such
non-Israeli corporation or (ii) are the beneficiaries of, or are entitled to, 25% or more of the revenues or profits of such non-Israeli
corporation, whether directly or indirectly. In addition, such exemption is not applicable to a person whose gains from selling or otherwise
disposing of the shares are deemed to be business