Company: EVGN
Filing Date: 2025-03-27
Form Type: 20-F
Source: 0001178913-25-001092
Chunk: 251

Company: Evogene Ltd.
Filing Date: 2025-03-27
Form: 20-F
Item: Item 9
Chunk 251
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duction transactions. However, such reduced rate shall not apply if we are a PFIC for the taxable year in which we pay a dividend, or
were a PFIC for the preceding taxable year. Dividends will not be eligible for the dividends received deduction generally allowed to corporate
U. S. Holders.

106

If you are a U. S. Holder, dividends that we pay you with respect
to our ordinary shares will be treated as foreign source income, which may be relevant in calculating your foreign tax credit limitation.
Subject to certain conditions and limitations, Israeli tax withheld on dividends may be deducted from your taxable income or credited
against your United States federal income tax liability. The limitation on foreign taxes eligible for credit is calculated separately
with respect to specific classes of income. For this purpose, dividends that we distribute generally should constitute “passive
category income.” A foreign tax credit for foreign taxes imposed on distributions may be denied if you do not satisfy certain minimum
holding period requirements. The rules relating to the determination of the foreign tax credit are complex, and you are encouraged to
consult your tax advisor to determine whether and to what extent you will be entitled to this credit.

Sale, Exchange or Other Disposition of Ordinary
Shares

Subject to the discussion below under “ Passive Foreign Investment Company Considerations,”
if you are a U. S. Holder, you generally will recognize an amount of gain or loss on the sale, exchange or other disposition of our ordinary
shares equal to the difference between the amount realized on such sale, exchange or other disposition and your tax basis in our ordinary
shares, and such gain or loss will be capital gain or loss. The tax basis in an ordinary share generally will equal the cost of such ordinary
share. If you are a non-corporate U. S. Holder, capital gain from the sale, exchange or other disposition of ordinary shares generally
will be eligible for a preferential rate of taxation applicable to capital gains, if your holding period for such ordinary shares exceeds
one year. The deductibility of capital losses for United States federal income tax purposes is subject to limitations under the Code.
However, as discussed below, we believe we were not classified as a PFIC for the year ended December 31, 2024. In case we are classified
as PFIC special rules may apply as explained below. Any such gain or loss that a U. S. Holder recognizes generally will be treated as U. S.
source income or loss for foreign tax credit limitation purposes