Company: GAUZ
Filing Date: 2025-03-11
Form Type: 20-F
Source: 0001213900-25-022437
Chunk: 129

Company: Gauzy Ltd.
Filing Date: 2025-03-11
Form: 20-F
Item: Item 10
Chunk 129
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 for each applicable taxable year may result in substantial penalties and result in the U. S. Holder’s taxable years being open
to audit by the IRS until such forms are properly filed.

U. S. Holders who hold our
ordinary shares during a period when we are a PFIC generally will be subject to the foregoing rules, even if we cease to be a PFIC. A
U. S. Holder is encouraged to consult its tax advisor with respect to any available elections that may be applicable in such a situation,
including a “deemed sale” election. The U. S. federal income tax rules relating to PFICs are complex. U. S. Holders are urged
to consult their own tax advisors with respect to the consequences to them of an investment in a PFIC, any elections available with respect
to the ordinary shares and the IRS information reporting obligations with respect to the purchase, ownership, and disposition of the
ordinary shares in the event we are determined to be a PFIC.

Tax on Net Investment
Income

U. S. Holders who are individuals,
estates or trusts will generally be required to pay a 3.8% Medicare tax on their net investment income (including dividends on and gains
from the sale or other disposition of our ordinary shares), or in the case of estates and trusts on their net investment income that
is not distributed to beneficiaries of the estate or trust. In each case, the 3.8% Medicare tax applies only to the extent the U. S. Holder’s
total adjusted income exceeds applicable thresholds.

Information Reporting
and Withholding

A U. S. Holder may be subject
to backup withholding at a rate of 24% with respect to cash dividends and proceeds from a disposition of ordinary shares. In general,
backup withholding will apply only if a U. S. Holder fails to comply with specified identification procedures. Backup withholding will
not apply with respect to payments made to designated exempt recipients, such as corporations and tax-exempt organizations. Backup withholding
is not an additional tax and may be claimed as a credit against the U. S. federal income tax liability of a U. S. Holder, provided that
the required information is timely furnished to the IRS.

Certain U. S. Holders with
interests in “specified foreign financial assets” (including, among other assets, our ordinary shares, unless such ordinary
shares are held on such U. S. Holder’s behalf through a financial institution) may be required to file an