Company: GAUZ
Filing Date: 2025-03-11
Form Type: 20-F
Source: 0001213900-25-022437
Chunk: 113

Company: Gauzy Ltd.
Filing Date: 2025-03-11
Form: 20-F
Item: Item 10
Chunk 113
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 or advancement of the Industrial Enterprise, over an eight-year period,     
  commencing with the year in which the Industrial Company began to use them;                 
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  under                                                                                             

  expenses                                                                                  

Eligibility for benefits under
the Industry Encouragement Law is not contingent upon approval of any governmental authority. There can be no assurance that we have
qualified or will qualify in the future as an Industrial Company and there can be no assurance that the benefits described above will
be available in the future.

Tax Benefits and Grants for Research and
Development

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

  the research and expenditures are approved by the relevant Israeli  

  the research and development are for the development or promotion  

  the research and development are carried out by or on behalf  

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. Under these research and development deduction rules, no deduction is allowed for any expense invested in an asset depreciable
under the general depreciation rules of the Ordinance. Expenditures that do not qualify for this special deduction are deductible in
equal amounts over three years.

From time to time, we may
apply to the IIA for approval to allow a tax deduction for research and development expenses during the year incurred. There can be no
assurance that any such application will be approved.

Law for the Encouragement of Capital Investments, 5719-1959

The Law for the Encouragement
of Capital Investments, 5719-1959, or the Investment Law, provides certain incentives for capital investments in production facilities
(or other eligible assets) by “ Industrial Enterprises” (as defined under the Investment Law). Generally, an investment program
that is implemented in accordance with the provisions of the Investment Law, referred to as an Approved Enterprise, a Beneficiary Enterprise,
a Preferred Enterprise, a Preferred Technological Enterprise, or a Special Preferred Technological Enterprise, is entitled to benefits
as discussed below. These benefits may include cash grants from the Israeli government and tax benefits based upon, among other things,
the geographic location in Israel of the facility in which the investment is made. To qualify for