Company: RGNT
Filing Date: 2025-03-11
Form Type: F-1
Source: 0001213900-25-022350
Chunk: 211

Company: REGENTIS BIOMATERIALS LTD.
Filing Date: 2025-03-11
Form: F-1
Chunk 211
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 Technology Income”
regardless of the company’s geographic location within Israel. In addition, a Special Preferred Technology Enterprise will enjoy
a reduced corporate tax rate of 6% on the capital gain derived from the sale of certain “Benefitted Intangible Assets” to
a related foreign company if the Benefitted Intangible Assets were either developed by an Israeli company or acquired from a foreign
company on or after January 1, 2017, and the sale received prior approval from NATI. A Special Preferred Technology Enterprise that acquires
Benefitted Intangible Assets from a foreign company for more than NIS 500 million will be eligible for these benefits for at least 10
years, subject to certain approvals as specified in the Investment Law.

Dividends distributed by
a Preferred Technology Enterprise or a Special Preferred Technology Enterprise, paid out of Preferred Technology Income, are subject
to withholding tax at source at the rate of 20% or such lower rate as may be provided in an applicable tax treaty (subject to the receipt
in advance of a valid certificate from the Israel Tax Authority allowing for a reduced tax rate). However, if such dividends are paid
to an Israeli company, no tax is required to be withheld. In the event that at least 90% of the company shares are held by foreign companies,
and other conditions are met, such dividends will be subjected to withholding tax rate will be 4%.

After examining the impact
of the 2017 Amendment, we submitted a request to receive a tax ruling from the Israel Tax Authority to be recognized as a Preferred Technology
Enterprise and recently we received a tax ruling from the Israel Tax Authority granting a Preferred Technology Enterprise status, subject
to terms and conditions determined in the tax ruling.

Taxation of Our Israeli Individual Shareholders on Receipt of Dividends

Israeli residents who are
individuals are generally subject to Israeli income tax for dividends paid on our Ordinary Shares (other than bonus shares or share dividends)
at a rate of 25%, or 30% if the recipient of such dividend is a Substantial Shareholder (as defined below) at the time of distribution
or at any time during the preceding 12-month period.

A “Substantial Shareholder”
is generally a person who alone, or together with his or her relative or another person who collaborates with him or her on a regular
basis, holds, directly or indirectly, at least 10% of any of the “means of control” of a corporation. “Means of control”
generally include