Company: TSEM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001178913-25-001537
Chunk: 115

Company: TOWER SEMICONDUCTOR LTD
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 115
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, possibly
with retroactive effect, and are open to differing interpretations. This description does not discuss all aspects of U. S. federal income
taxation that may be applicable to investors in light of their particular circumstances or to investors who are subject to special treatment
under U. S. federal income tax law, including:

  insurance companies;  

  dealers in stocks, securities or currencies;  

  financial institutions and financial services entities;  

  real estate investment trusts;  

  regulated investment companies;  

  persons that receive ordinary shares as compensation for the performance of services;  

  tax-exempt organizations;  

  persons that hold ordinary shares as a position in a straddle or as part of a hedging, conversion or other integrated instrument;  

  individual retirement and other tax-deferred accounts;  

  expatriates of the United States;  

  persons (other than Non-U. S. Holders) having a functional currency other than the U. S. dollar; and  

  direct, indirect or constructive owners of 10% or more, by voting power or value, of us.  

This discussion also does not consider the tax treatment of persons
or partnerships that hold ordinary shares through a partnership or other pass-through entity or the possible application of United States
federal gift or estate tax or alternative minimum tax or any state or local tax.

THE FOLLOWING DISCUSSION IS FOR INFORMATIONAL
PURPOSES ONLY AND IS NOT A SUBSTITUTE FOR CAREFUL TAX PLANNING AND ADVICE. HOLDERS SHOULD CONSULT THEIR OWN TAX ADVISORS WITH RESPECT
TO THE APPLICATION OF THE UNITED STATES FEDERAL INCOME TAX LAWS TO THEIR PARTICULAR SITUATIONS, AS WELL AS ANY TAX CONSEQUENCES ARISING
UNDER THE FEDERAL ESTATE OR GIFT TAX LAWS OR THE LAWS OF ANY STATE, LOCAL OR NON-UNITED STATES TAXING JURISDICTION OR UNDER ANY APPLICABLE
TAX TREATY.

74

Distributions Paid on the Ordinary Shares

Subject to the discussion under “ Passive Foreign Investment
Companies” below, a U. S. Holder generally will be required to include in gross income as ordinary dividend income the amount of
any distributions paid on the ordinary shares, including the amount of any Israeli taxes withheld, to the extent that those distributions
are paid out of our current or accumulated earnings and profits as determined for U. S. federal income tax purposes. Distributions in excess
of our earnings and profits will be applied against and