Company: EVGN
Filing Date: 2025-03-27
Form Type: 20-F
Source: 0001178913-25-001092
Chunk: 129

Company: Evogene Ltd.
Filing Date: 2025-03-27
Form: 20-F
Item: Item 4A
Chunk 129
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 are recognized in profit or loss.

Impact of Israeli Tax Policies and Government Programs on Our Operating
Results

Tax regulations have a material impact on our business, particularly
in Israel where we have our headquarters. The following summary describes the current tax structure applicable to companies in Israel,
with special reference to its effect on us.

General Corporate Tax Structure in Israel

Israeli companies are generally subject to corporate tax on their
taxable income. In 2024, the corporate tax rate was 23%. Capital gains derived by an Israeli company are generally subject to tax at the
prevailing regular corporate tax rate.

Law for the Encouragement of Industry (Taxes),
5729-1969

The Law for the Encouragement of Industry (Taxes), 5729-1969, generally
referred to as the Industry Encouragement Law, provides several tax benefits for an “ Industrial Company”.

The Industry Encouragement Law defines an “ Industrial Company”
as an Israeli resident company which was incorporated in Israel, of which 90% or more of its income in any tax year, other than income
from certain government loans, is derived from an “ Industrial Enterprise” owned by it and located in Israel. An “ Industrial
Enterprise” is defined as an enterprise that is held by an Industrial Company whose principal activity in a given tax year is industrial
production.

77

The following tax benefits, among others, are available to Industrial
Companies:

  amortization over an eight-year period of the cost of purchased know-how and patents and rights to use a patent and know-how which          
  were purchased in good faith and are used for the development or advancement of the Industrial Enterprise, commencing in the year in which  
  such rights were first exercised;                                                                                                           
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  under limited conditions, an election to file consolidated tax returns together with Israeli Industrial Companies controlled by it;  

  expenses related to a public offering are deductible in equal amounts over a three-year period, commencing in the year of the offering.  
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Eligibility for benefits under the Industry Encouragement Law is
not contingent upon the approval of any governmental authority. We believe that we currently qualify as an Industrial Company within the
meaning of the Industry Encouragement Law. There can be no assurance that we will continue to qualify as an Industrial Company