Company: TSEM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001178913-25-001537
Chunk: 114

Company: TOWER SEMICONDUCTOR LTD
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 114
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who are subject to tax in Israel (whether any such an individual is an Israeli resident or a non-Israeli resident) and who have taxable
income that exceeds a certain threshold in a tax year (NIS 698,280 in 2023 and NIS 721,560 in 2024 and 2025), will be subject to an additional
tax at the rate of 3% on any taxable income prior to January 1, 2025, and at the rate of 3% on active taxable income and 5%, on passive
taxable income commencing January 1, 2025. For this purpose, passive taxable income includes taxable capital gains from the sale of securities
and taxable income from interest and dividends.

Estate and Gift Tax

Israeli law presently does not impose estate or gift taxes.

U. S. Federal Income Tax Considerations

The following discussion is a description of the material U. S.
federal income tax considerations applicable to an investment in the ordinary shares by U. S. Holders who acquire our ordinary shares and
hold them as capital assets for U. S. federal income tax purposes. As used in this section, the term “ U. S. Holder” means a
beneficial owner of an ordinary share who is:

  an individual citizen or resident of the United States;  

  a corporation created or organized in or under the laws of the United States or of any state of the United States or the District  

  an estate, the income of which is subject to U. S. federal income taxation regardless of its source; or  

  a trust if the trust has elected validly to be treated as a United States person for U. S. federal income tax purposes or if a U. S.    

73

The term “ Non-U. S. Holder” means a beneficial owner
of an ordinary share who is not a U. S. Holder. The tax consequences to a Non-U. S. Holder may differ substantially from the tax consequences
to a U. S. Holder. Certain aspects of U. S. federal income tax relevant to a Non-U. S. Holder also are discussed below.

This description is based on provisions of the U. S. Internal Revenue
Code of 1986, as amended, referred to in this discussion as the Code, existing and proposed U. S. Treasury regulations and administrative
and judicial interpretations, each as available and in effect as of the date of this annual report. These sources may change