Company: TSEM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001178913-25-001537
Chunk: 116

Company: TOWER SEMICONDUCTOR LTD
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 116
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 will reduce the U. S. Holder’s tax basis in its ordinary shares and, to the
extent they exceed that tax basis, will be treated as gain from a sale or exchange of those ordinary shares. We do not maintain calculations
of our earnings and profits under U. S. federal income tax principles. If we do not report to a U. S. holder the portion of a distribution
that exceeds earnings and profits, the distribution will generally be taxable as a dividend even if that distribution would otherwise
be treated as a non-taxable return of capital or as a capital gain under the rules described above. Our dividends will not qualify for
the dividends-received deduction applicable in some cases to U. S. corporations.

Dividends paid in NIS, including the amount of any Israeli taxes
withheld, will be includible in the income of a U. S. Holder in a U. S. dollar amount calculated by reference to the exchange rate in effect
on the date they are included in income by the U. S. Holder, regardless of whether the payment in fact is converted into USD. Any gain
or loss resulting from currency exchange fluctuations during the period from the date the dividend is includible in the income of the
U. S. Holder to the date that payment is converted into USD generally will be treated as ordinary income or loss.

A non-corporate U. S. holder’s “qualified dividend income”
is subject to tax at reduced rates not exceeding 20% for tax years beginning 2012 (15% for 2011 and prior years). For this purpose, “qualified
dividend income” generally includes dividends paid by a foreign corporation if either:

  (a)      the stock of that corporation with respect to which the dividends are paid  
           is readily tradable on an established securities market in the U. S., or    
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  (b)      that corporation is eligible for benefits of a comprehensive income tax                                                                  

In addition, under current law a U. S. Holder must generally hold
his ordinary shares for more than 60 days during a 121 day period beginning 60 days prior to the ex-dividend date, and meet other holding
period requirements for qualified dividend income.

Dividends paid by a foreign corporation will not qualify for the
reduced rates, if such corporation is treated, for the tax year in which the dividend is paid or the preceding tax year, as a