Company: GAUZ
Filing Date: 2025-03-11
Form Type: 20-F
Source: 0001213900-25-022437
Chunk: 125

Company: Gauzy Ltd.
Filing Date: 2025-03-11
Form: 20-F
Item: Item 10
Chunk 125
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 of exchange in effect on the date the dividend is includible
in the income of the U. S. Holder, and U. S. Holders will have a tax basis in such NIS for U. S. federal income tax purposes equal to such
U. S. dollar value. If the U. S. Holder subsequently converts the NIS into U. S. dollars or otherwise disposes of them, any subsequent gain
or loss in respect of such NIS arising from exchange rate fluctuations will be U. S. source ordinary exchange gain or loss.

Subject to certain significant
conditions and limitations, any Israeli taxes paid on or withheld from distributions from us and not refundable to a U. S. Holder may
be credited against the U. S. Holder’s U. S. federal income tax liability or, alternatively, may be deducted from the U. S. Holder’s
taxable income. However, as a result of recent changes to the U. S. foreign tax credit rules, a withholding tax generally may need to
satisfy certain additional requirements in order to be considered a creditable tax for a U. S. Holder. We have not determined whether
these requirements have been met and, accordingly, no assurance can be given that any withholding tax on dividends paid by us will be
creditable. The election to deduct, rather than credit, foreign taxes, is made on a year-by-year basis and applies to all foreign taxes
paid by a U. S. Holder or withheld from a U. S. Holder that year. Dividends paid with respect to our ordinary shares will be treated as
foreign source income, which may be relevant in calculating the U. S. Holder’s foreign tax credit limitation. The limitation on
foreign taxes eligible for credit is calculated separately with respect to specific classes of income. For this purpose, dividends that
we distribute generally should constitute “passive category income,” or, in the case of certain U. S. Holders, “general
category income.” The rules relating to the determination of the foreign tax credit are complex, and U. S. Holders should consult
their tax advisor to determine whether and to what extent such holder will be entitled to this credit.

Dividends paid with respect
to our ordinary shares will not be eligible for the “dividends-received” deduction generally allowed to corporate U. S. Holders
with respect to dividends received from U. S. corporations.

Taxation of the
Sale, Exchange