Company: RGNT
Filing Date: 2025-01-27
Form Type: DRS/A
Source: 0001213900-25-006676
Chunk: 207

Company: REGENTIS BIOMATERIALS LTD.
Filing Date: 2025-01-27
Form: DRS/A
Chunk 207
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 tax at the rate of 23% on their taxable income, as of January
1, 2024. However, the effective tax rate payable by a company that derives income from a Preferred Enterprise or a Technology Enterprise,
as discussed below, may be considerably less.

Capital gains derived by
an Israeli resident company are generally subject to tax at the same rate as the corporate tax rate.

An Israeli resident company
is subject to taxation in Israel for all of its worldwide income.

Law for the Encouragement of Industry (Taxes), 1969

The Law for the Encouragement
of Industry (Taxes), 1969, which we refer to as the Industry Encouragement Law, provides several tax benefits for “Industrial Companies”,
which are defined as Israeli resident-companies which were incorporated in Israel, of which 90% or more of their income in any tax year,
other than income from certain government loans, is derived from “Industrial Enterprises” that it owns and that are located
in Israel.

An “Industrial Enterprise”
is defined as an enterprise whose principal activity in a given tax year is industrial production (and several other activities listed
in the said law, and are associated with industrial production).

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

| ● | under limited conditions,                                                                            
 an election to file consolidated tax returns with related Industrial Companies controlled by it; and |

We believe that we 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 in the future or that the benefits described above will be available to us at all.

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Tax benefits and grants for research and development

Israeli tax law allows, under
certain conditions, a tax deduction for expenditures, including capital expenditures, for the year in which they are incurred. Expenditures
are deemed related to scientific research and development projects, if:

| ● | The expenditures are approved                                                     
 by the relevant Israeli government ministry, determined by the field of research; |

| ● | The research and development                  
 must be for the promotion of the company; and |

| ● | The research and development                                               
 are carried out by or on behalf of the company seeking such tax deduction. |

The amount of such deductible
expenses is reduced by the sum of any funds received through government grants for the finance of such scientific research and development
projects. No deduction under these research and