Company: GAUZ
Filing Date: 2025-03-11
Form Type: 20-F
Source: 0001213900-25-022437
Chunk: 120

Company: Gauzy Ltd.
Filing Date: 2025-03-11
Form: 20-F
Item: Item 10
Chunk 120
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 for such 20% withholding tax rate or lower treaty rate is obtained in advance).

As discussed above, a reduced
tax rate on dividends may be available under an applicable treaty (provided that a certificate from the ITA allowing for such lower treaty
rate is obtained in advance). For example, under the U. S.-Israel Tax Treaty, the maximum rate of tax withheld at source in Israel
on dividends paid to a holder of our ordinary shares who is a Treaty U. S. Resident is 25%. However, generally, a maximum rate of
12.5% applies to withholding tax on dividends that are paid by an Israeli corporation to a U. S. corporation holding 10% or more of the
outstanding voting capital of an Israeli corporation throughout the tax year in which the dividend is distributed as well as during the
previous tax year, provided that not more than 25% of the gross income of the Israeli corporation for such preceding year consists of
certain types of dividends and interest. Notwithstanding the foregoing, dividends distributed from income attributed to a Preferred Enterprise
are not entitled to such reduction under the U. S.-Israel Tax Treaty but are subject to a withholding tax rate of 15% for a shareholder
that is a U. S. corporation, provided that the condition related to the company’s gross income for the previous year (as discussed
in the previous sentence) is met. If the dividend is attributable partly to income derived from a Preferred Enterprise or Preferred Technological
Enterprise, and partly to other sources of income, the withholding rate could be a blended rate reflecting the relative portions of the
two types of income.

We cannot assure you that
we will designate the profits that we may distribute in a way that will reduce shareholders’ tax liability.

A non-Israeli resident
that receives dividends from an Israeli resident from which the full tax was deducted will generally be exempt from filing a tax return
in Israel with respect to such income, provided that (i) such income was not generated from a business conducted in Israel by the
non-Israeli resident; (ii) the non-Israeli resident has no other taxable sources of income in Israel; and (iii) the
non-Israeli resident is not subject to surtax (as explained below).

Surtax

Subject
to the provisions of an applicable tax treaty, individuals who are subject to income tax in Israel (whether such individual is an Israeli
resident or non-Israeli resident) are subject to (i) an additional tax at a rate