Company: RGNT
Filing Date: 2025-05-05
Form Type: F-1/A
Source: 0001213900-25-039589
Chunk: 213

Company: REGENTIS BIOMATERIALS LTD.
Filing Date: 2025-05-05
Form: F-1/A
Chunk 213
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 such terms are defined in
the Investment Law) as of January 1, 2011.

The definition of a Preferred
Company includes a company incorporated in Israel that is not fully owned by a governmental entity, and that has, among other things,
a Preferred Enterprise and is required to be controlled and managed from Israel, and files Israeli tax returns.

Under the current tax rates
set in the Investment Law as of 2019, a Preferred Company may be entitled to a reduced corporate tax rate of 16%; if the Preferred Company
owns a Preferred Enterprise located in an area which is defined as a “development zone A” the corporate tax rate will be 7.5%.
Further, income produced by a Preferred Company from a “Special Preferred Enterprise” (as such term is defined in the Investment
Law) is entitled, during a benefit period of 10 years, to further reduced tax rates of 8%, or 5% if the Special Preferred Enterprise is
located in a certain development zone. As of January 1, 2017, the definition for “Special Preferred Enterprise” includes less
stringent conditions.

As of January 1, 2014, dividends
paid out of income attributed to a “Preferred Income” as defined in Section 51 of the law, derived from a Preferred Enterprise
or to a Special Preferred Enterprise are subject to withholding tax at source at the rate of 20%.

However, dividends paid to
an Israeli company, are not subject to any tax withholding.

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A distribution of dividends
to non-Israeli (individuals or companies) will be subjected to tax withholding at a rate of 20%, or lower rates if provided under an applicable
tax treaty (subject to the receipt in advance of a valid certificate from the Israel Tax Authority allowing for a reduced tax rate).

New Tax benefits under the 2017 Amendment

The 2017 Amendment was enacted
as part of the Economic Efficiency Law that was published on December 29, 2016, and is effective as of January 1, 2017.

The 2017 Amendment provides
new tax benefits for two types of “Technology Enterprises”, as described below, and is in addition to the other existing tax
beneficial programs under the Investment Law.

The 2017 Amendment provides
that a technology company satisfying certain conditions will qualify as a “Preferred Technology Enterprise” and will thereby
enjoy a reduced corporate tax rate of 12% on income that qualifies as “