Company: PGYWW
Filing Date: 2025-12-05
Form Type: S-3ASR
Source: 0000950103-25-015781
Chunk: 70

Company: Pagaya Technologies Ltd.
Filing Date: 2025-12-05
Form: S-3ASR
Chunk 70
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 from the ITA was
received stating Pagaya is entitled to the tax benefits under the 2017 Amendment, as a Preferred Technological Enterprise, subject to
certain approvals and subject to certain limitations on the income eligible for such tax benefits.

Taxation of our shareholders

Capital gains tax on sales of our Class A Ordinary Shares

Israeli law generally imposes a capital gains
tax on the sale of any capital assets by Israeli residents, as defined for Israeli tax purposes. Israeli law also generally imposes a
capital gains tax on the sale of capital assets located in Israel, including shares in Israeli companies, by both Israeli residents and
non-Israeli residents, unless a specific exemption is available or unless a tax treaty between Israel and the shareholder’s country
of residence provides otherwise. The ITO distinguishes between real gain and inflationary surplus. The inflationary surplus is a portion
of the total capital gain equivalent to the increase of the relevant asset’s purchase price attributable to an increase in the Israeli
consumer price index, or, under certain circumstances, a foreign currency exchange rate, between the date of purchase and the date of
sale. Inflationary surplus is currently not subject to tax in Israel. The real gain is the excess of the total capital gain over the inflationary
surplus.

Capital gains taxes applicable to Israeli resident shareholders

An Israeli resident corporation that derives capital
gains from the sale of shares in an Israeli resident company will generally be subject to tax on the real capital gains generated on such
sale at the corporate tax rate of 23% (in 2025). An Israeli resident individual will generally be subject to capital gains tax at the
rate of 25%. However, if the individual shareholder claims deduction of interest expense and linkage differences in connection with the
purchase

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and holding of such shares or is a “substantial
shareholder” at the time of the sale or at any time during the preceding 12-month period, such gain will be taxed at the rate of
30%. A “substantial shareholder” is generally a person who alone, or together with such person’s related party or another
person who collaborates with such person on a permanent basis, holds, directly or indirectly, at least 10% of any of the “means
of control” of the corporation. “Means of control” generally include the right to vote, receive profits, nominate a
director or an executive officer, receive assets upon liquidation, or order someone who holds