Company: BLRX
Filing Date: 2025-03-31
Form Type: 20-F
Source: 0001178913-25-001123
Chunk: 259

Company: BioLineRx Ltd.
Filing Date: 2025-03-31
Form: 20-F
Item: Item 8
Chunk 259
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 any time during the preceding 12-month period is subject to tax at a rate of 30% in respect of real capital gains derived from the
sale of shares issued by the company in which he or she is a substantial shareholder.

Real capital gains derived by an Israeli company are generally
subject to tax at the same rate as the corporate tax rate (currently 23%).

95

Capital Gains Taxes Applicable
to Non-Israeli Resident Shareholders. Shareholders that are not Israeli residents are generally exempt from Israeli capital gains
tax on any gains derived from the sale, exchange or disposition of our ordinary shares, provided that such shareholders did not acquire
their ordinary shares prior to our initial public offering on the TASE and such gains were not derived from a permanent establishment
or business activity of such shareholders in Israel. However, non-Israeli corporations will not be entitled to the foregoing exemptions
if one or more Israeli residents (a) have a controlling interest of more than 25% in such non-Israeli corporation or (b) 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, under the Treaty, the sale, exchange or disposition
of our ordinary shares by a shareholder who is a U. S. resident (for purposes of the Treaty) holding the ordinary shares as a capital asset
is exempt from Israeli capital gains tax unless (1) the shareholder holds, directly or indirectly, shares representing 10% or more of
our voting capital during any part of the 12-month period preceding such sale, exchange or disposition; (2) the capital gains arising
from such sale are attributable to a permanent establishment of the shareholder located in Israel; (3) a shareholder who is an individual
is present in Israel for a period or periods aggregating 183 days or more during a taxable year. In either case, the sale, exchange or
disposition of ordinary shares would be subject to Israeli tax, to the extent applicable (subject to the receipt in advance of a valid
certificate from the Israeli tax authorities); however, under the Treaty, the U. S. resident would be permitted to claim a credit for the
tax against the U. S. federal income tax imposed with respect to the sale, exchange or disposition, subject to the limitations in U. S.
laws applicable to foreign tax credits. The Treaty does not cover U. S. state or local taxes.

Shareholders may be required to demonstrate