Company: DRTSW
Filing Date: 2025-06-23
Form Type: F-3
Source: 0001213900-25-056744
Chunk: 25

Company: Alpha Tau Medical Ltd.
Filing Date: 2025-06-23
Form: F-3
Chunk 25
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 Parliament approved the Economic Efficiency Law (Legislative
Amendments for Applying the Economic Policy for the 2017 and 2018 Budget Years) which reduced the corporate income tax rate from 25% to
24% effective from January 1, 2017, and to 23% effective from January 1, 2018 and thereafter. However, the effective tax rate payable
by a company that derives income from a Preferred Enterprise, or a Technological Enterprise (each, as defined herein) may be considerably
less. Capital gains derived by an Israeli company are generally subject to the prevailing regular corporate tax rate.

Law for the Encouragement of Industry (Taxes), 5729-1969

The
Law for the Encouragement of Industry (Taxes), 5729-1969, generally referred to as the “Industry Encouragement Law”, provides
several tax benefits for “Industrial Companies.” Alpha Tau may qualify as an Industrial Company within the meaning of the
Industry Encouragement Law.

The
Industry Encouragement Law defines an “Industrial Company” as an Israeli resident-company, incorporated in Israel, of which
90% or more of its income in any tax year, other than income from certain government loans, capital gains, interest and dividends, is
derived from an “Industrial Enterprise” owned by it and located in Israel or in the “Area,” in accordance with
the definition under section 3A of the Israeli Income Tax Ordinance (New Version) 1961, or the Ordinance. An “Industrial Enterprise”
is defined as an enterprise which is held by an Industrial Company whose principal activity in a given tax year is industrial production.

The
following are the main tax benefits available to Industrial Companies:

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| ● | Under limited conditions, an election to file consolidated tax returns with controlled Israeli Industrial 
 Companies;                                                                                                |

| ● | Expenses related to a public offering are deductible in equal amounts over three years commencing on the 
 year of the offering.                                                                                    |

| ● | Eligibility for benefits under the Industry Encouragement Law is not contingent upon approval of any governmental 
 authority.                                                                                                        |

We
have claimed tax benefits as an Industrial Company under the Industry Encouragement Law, but there can be no assurance that we are qualified
or will continue to qualify as an Industrial Company or that the benefits described above will be available in the future.

Tax Benefits and Grants for Research and Development

Israeli
tax law