Company: GAUZ
Filing Date: 2025-03-11
Form Type: 20-F
Source: 0001213900-25-022437
Chunk: 127

Company: Gauzy Ltd.
Filing Date: 2025-03-11
Form: 20-F
Item: Item 10
Chunk 127
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, we believe that we were not a PFIC for the year ended December 31, 2024 and
we do not expect to be a PFIC for United States federal income tax purposes for the current taxable year or in the foreseeable future..
The tests for determining PFIC status are applied annually, and it is difficult to make accurate projections of future income and assets
which are relevant to this determination. In addition, our PFIC status may depend in part on the market value of our ordinary shares.
Accordingly, there can be no assurance that we currently are not or will not become a PFIC.

If we currently are or become
a PFIC, each U. S. Holder who has not elected to mark the shares to market (as discussed below), would, upon receipt of certain “excess
distributions” by us and upon disposition of our ordinary shares at a gain: (1) have such excess distribution or gain allocated
ratably over the U. S. Holder’s holding period for the ordinary shares, as the case may be; (2) the amount allocated to the current
taxable year and any period prior to the first day of the first taxable year in which we were a PFIC would be taxed as ordinary income;
and (3) the amount allocated to each of the other taxable years would be subject to tax at the highest rate of tax in effect for the
applicable class of taxpayer for that year, and an interest charge for the deemed deferral benefit would be imposed with respect to the
resulting tax attributable to each such other taxable year. Distributions received by a U. S. Holder in a taxable year that are greater
than 125% of the average annual distributions received during the shorter of the three preceding taxable years or the U. S. Holder’s
holding period for the ordinary shares will be treated as excess distributions. In addition, when shares of a PFIC are acquired by reason
of death from a decedent that was a U. S. Holder, the tax basis of such shares would not receive a step-up to fair market value as of
the date of the decedent’s death, but instead would be equal to the decedent’s basis if lower, unless all gain were recognized
by the decedent. Indirect investments in a PFIC may also be subject to these special U. S. federal income tax rules.

The PFIC rules described
above would not apply to a U. S. Holder who makes a