Company: RGNT
Filing Date: 2025-03-11
Form Type: F-1
Source: 0001213900-25-022350
Chunk: 209

Company: REGENTIS BIOMATERIALS LTD.
Filing Date: 2025-03-11
Form: F-1
Chunk 209
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 deduction rules is allowed if such deduction is related to an expense invested
in an asset depreciable under the general depreciation rules of the Ordinance. Expenditures that are qualified under the condition above
are deductible in equal amounts over three years.

From time to time, we may
apply to the Israel Innovation Authority for approval to allow a tax deduction for all or most of research and development expenses during
the year incurred. There can be no assurance that such application will be accepted.

Law for the Encouragement of Capital Investments, 1959

The Law for the Encouragement
of Capital Investments, 1959, which we refer to as the Investment Law, provides certain incentives for capital investments in production
facilities (or other eligible assets). The Investment Law was significantly amended effective April 1, 2005, further amended as of January
1, 2011, or the 2011 Amendment and, as of January 1, 2017, the 2017 Amendment. The 2011 Amendment introduced new benefits to replace
those granted in accordance with the provisions of the Investment Law in effect prior to the 2011 Amendment. The 2017 Amendment introduces
new benefits for Technological Enterprises, alongside the existing tax benefits.

Tax Benefits under the 2011 Amendment

The 2011 Amendment canceled
the availability of the benefits granted to Industrial Companies under the Investment Law prior to 2011 and, instead, introduced new
benefits for income generated by a “Preferred Company” through its “Preferred Enterprise” (as 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