Company: GAUZ
Filing Date: 2025-03-11
Form Type: 20-F
Source: 0001213900-25-022437
Chunk: 118

Company: Gauzy Ltd.
Filing Date: 2025-03-11
Form: 20-F
Item: Item 10
Chunk 118
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 Persons” (as defined in the Ordinance, and includes corporate entities, partnerships,
and other entities) will not be entitled to the foregoing exemption if Israeli residents: (i) have, directly or indirectly, alone
or together with such person’s relatives or another person who, according to an agreement, collaborates with such person on a permanent
basis regarding material affairs of the company, or with another Israeli tax resident, a controlling interest of more than 25% in any
of the means of control of such non-Israeli Body of Persons or (ii) are the beneficiaries of, or are entitled to, 25% or more
of the revenues or profits of such non-Israeli Body of Persons, whether directly or indirectly. In addition, such exemption is not
applicable to a person whose gains from selling or otherwise disposing of the shares are deemed to be business income.

Additionally, a sale of shares
of an Israeli resident company by a non-Israeli resident may be exempt from such Israeli capital gains tax under the provisions
of an applicable tax treaty. For example, under the Convention Between the Government of the United States of America and the Government
of the State of Israel with respect to Taxes on Income, as amended, or the U. S.-Israel Tax Treaty, the sale, exchange or other disposition
of shares by a shareholder who is a U. S. resident (for purposes of the treaty) holding the shares as a capital asset and who is
entitled to claim the benefits afforded to such a resident by the U. S.-Israel Tax Treaty, or a Treaty U. S. Resident, is generally
exempt from such Israeli capital gains tax unless: (i) the capital gain arising from such sale, exchange or disposition is attributed
to real estate located in Israel; (ii) the capital gain arising from such sale, exchange or disposition is attributed to royalties;
(iii) the capital gain arising from such sale, exchange or disposition is attributable (as determined under the U. S.-Israel Tax
Treaty) to a permanent establishment that such Treaty U. S. Resident has in Israel; (iv) such Treaty U. S. Resident holds,
directly or indirectly, shares representing 10% or more of the voting capital of such company during any part of the 12-month period
preceding the sale, exchange or disposition, subject to certain conditions; or (v) such Treaty U. S. Resident is an individual
and was present in Israel for 183 days