Company: TSEM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001178913-25-001537
Chunk: 248

Company: TOWER SEMICONDUCTOR LTD
Filing Date: 2025-04-30
Form: 20-F
Item: Item 10
Chunk 248
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 and the foreign
tax credit are complex, and the availability of a foreign tax credit depends on numerous factors. Each prospective purchaser who would
be a U. S. Holder should consult with its own tax advisor to determine whether its income with respect to the ordinary shares would be
foreign source income and whether and to what extent that purchaser would be entitled to the credit.

Disposition of Ordinary Shares

Subject to the discussion below under the heading “ Passive
Foreign Investment Companies,” upon the sale or other disposition of ordinary shares, a U. S. Holder generally will recognize capital
gains or loss equal to the difference between the amount realized on the disposition and the holder’s adjusted tax basis in the
ordinary shares. U. S. Holders should consult their own advisors with respect to the tax consequences of the receipt of a currency other
than USD upon such sale or other disposition.

In the event there is an Israeli income tax on gain from the disposition
of ordinary shares, such tax should generally be the type of tax that is creditable for U. S. tax purposes; however, because it is likely
that the source of any such gain would be a U. S. source, a U. S. foreign tax credit may not be available. U. S. shareholders should consult
their own tax advisors regarding the ability to claim such credit.

Gain or loss upon the disposition of the ordinary shares will be
treated as long-term if, at the time of the sale or disposition, the ordinary shares were held for more than one year. Long-term capital
gains realized by non-corporate U. S. Holders are generally subject to a lower marginal U. S. federal income tax rate than ordinary income,
other than qualified dividend income, as defined above. The deductibility of capital losses by a U. S. Holder is subject to limitations.
In general, any gain or loss recognized by a U. S. Holder on the sale or other disposition of ordinary shares will be U. S. source income
or loss for U. S. foreign tax credit purposes. U. S. Holders should consult their own tax advisors concerning the source of income for U. S.
foreign tax credit purposes and the effect of the U. S.-Israel Tax Treaty on the source of income.

Subject to the discussion below under “ Information
Reporting and Back-up Withholding”, a Non-U. S. Holder generally will not be subject to U. S. federal income or withholding tax on
any gain realized on the