Company: PGYWW
Filing Date: 2025-12-05
Form Type: S-3ASR
Source: 0000950103-25-015781
Chunk: 74

Company: Pagaya Technologies Ltd.
Filing Date: 2025-12-05
Form: S-3ASR
Chunk 74
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. Such dividends are generally subject to Israeli withholding tax at a rate of 25% if the shares are registered with
a nominee company (whether the recipient is a substantial shareholder or not). The withholding rates may be reduced if the dividend is
distributed from income attributed to a Preferred Enterprise or Technological Enterprise or if a reduced rate is provided under an applicable
tax treaty, in each case subject to the receipt in advance of a valid certificate from the ITA allowing for a reduced withholding rate.
For example, under the U.S.-Israel Tax Treaty, the maximum rate of tax withheld at source in Israel on dividends paid to a holder of our
Class A Ordinary Shares who is a U.S. Resident is 25%. However, the maximum withholding tax rate on dividends (not generated by a Preferred
Technological Enterprise) that are paid to a United States corporation holding shares representing 10% or more of our outstanding voting
power throughout the tax year in which the dividend is distributed as well as during the previous tax year is generally 12.5%, provided
that not more than 25% of the gross income for such preceding year consists of certain types of dividends and interest. Notwithstanding
the foregoing, dividends distributed from income attributed to a Preferred Technological Enterprise are not entitled to such reduction
under the U.S.-Israel Tax Treaty but are subject to a withholding tax rate of 15% for a shareholder that is a U.S. corporation, provided
that the conditions related to the outstanding voting rights and the gross income for the previous year (as set forth in the previous
sentences) are met. If the dividend is attributable partly to income derived from a Preferred Technological Enterprise, and partly to
other sources of income, the withholding rate will be a blended rate reflecting the relative portions of the two types of income. We cannot
assure you that we will designate the profits that we may distribute in a way that will reduce shareholders’ tax liability.

A foreign resident who had income from a dividend
that was accrued from Israeli source, from which the full tax was deducted, will generally be exempt from filing a tax return in Israel,
provided that (i) such income was not generated from business conducted in Israel by the foreign resident, (ii) the foreign resident has
no other taxable sources of income in Israel with respect to which a tax return is required to be filed and (iii) the foreign resident
is not liable to surtax (see below) in accordance with Section 121B of the ITO.