Company: EVGN
Filing Date: 2025-03-27
Form Type: 20-F
Source: 0001178913-25-001092
Chunk: 248

Company: Evogene Ltd.
Filing Date: 2025-03-27
Form: 20-F
Item: Item 9
Chunk 248
---
 permanent establishment of the U. S. resident which is maintained in Israel. We cannot assure you
that we will designate the profits that we may distribute in a way that will reduce shareholders’ tax liability. United States residents
who are subject to Israeli withholding tax on a dividend may be entitled to a credit or deduction for Untied States federal income tax
purposes in the amount of the taxes withheld, subject to detailed rules contained in United States tax legislation.

A non-Israeli resident who receives dividends from which tax was
withheld is generally exempt from the obligation to file tax returns in Israel with respect to such income, provided that (i) such
income was not derived from a business conducted in Israel by the taxpayer, (ii) the taxpayer has no other taxable sources of income
in Israel with respect to which a tax return is required to be filed, and (iii) in the case of individuals, the taxpayer is not obliged
to pay excess tax (as further explained below).

104

Excess Tax

Subject to the provisions of an applicable tax treaty, individuals
who are subject to tax in Israel (whether any such individual is an Israeli resident or non-Israeli resident) are also subject to an additional
tax at a rate of 3% on annual taxable income (including, but not limited to, dividends, interest and capital gain) exceeding a certain
threshold (NIS 721,560 for 2024), which amount is generally linked to the annual change in the Israeli consumer price index and therefore
is usually adjusted on an annual basis (with the exception that based on Israeli new legislation such amount, and certain other statutory
amounts will not be linked to the Israeli consumer price index for the years 2025-2027). According to new legislation, in effect as of
January 1, 2025, an additional2% excess tax is imposed on Capital-Sourced Income (defined as income from any source other than employment income, business income or
income from “personal effort”), to the extent that the Individual’s Capital Sourced Income exceeds the specified threshold
of NIS 721,560 (and regardless of the employment/business income amount of such individual). This new excess tax applies, among other
things, to income from capital gains, dividends, interest, rental income, or the sale of real property.

United States Federal Income Taxation

The following is a description of the material United States
federal income tax consequences to U. S. Holders (as defined below) of