Company: PGYWW
Filing Date: 2025-12-05
Form Type: S-3ASR
Source: 0000950103-25-015781
Chunk: 71

Company: Pagaya Technologies Ltd.
Filing Date: 2025-12-05
Form: S-3ASR
Chunk 71
---
 any of the aforesaid rights on how to exercise
these rights, regardless of the source of such right. Individual holders dealing in securities in Israel for whom the income from the
sale of securities is considered “business income” as defined in Section 2(1) of the ITO are taxed at the marginal tax rates
applicable to business income (up to 47% in 2025) plus an additional surtax of 3% as described below. Certain Israeli institutions that
are exempt from tax under Section 9(2) or Section 129C(a)(1) of the ITO (such as exempt trust funds and pension funds) may be exempt from
capital gains tax from the sale of the shares.

Capital gains taxes applicable to non-Israeli resident shareholders

A non-Israeli resident 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 be exempt from Israeli tax if, among other conditions, the shares were not held through a permanent establishment
that the non-resident maintains in Israel. However, non-Israeli corporations will not be entitled to the foregoing exemption if Israeli
residents: (i) alone, or together with such Israeli residents’ related party or another person who collaborates with such Israeli
resident on a permanent basis, hold, directly or indirectly, more than 25% of the means of control 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 income.

Additionally, a sale of securities by a non-Israeli
resident may be exempt from Israeli capital gains tax under the provisions of an applicable tax treaty. For example, under the Convention
Between the Government of the United States of America and the Government of the State of Israel with respect to Taxes on Income, as amended
(the “U.S.-Israel Tax Treaty”), the sale, exchange or other disposition of shares by a shareholder who is a United States
resident (for purposes of the treaty) holding the shares as a capital asset and who is entitled to claim the benefits afforded to such
a resident by the U.S.-Israel Tax Treaty (a “U.S. Resident”) is generally exempt from Israeli capital gains