Company: PGYWW
Filing Date: 2025-12-05
Form Type: S-3ASR
Source: 0000950103-25-015781
Chunk: 69

Company: Pagaya Technologies Ltd.
Filing Date: 2025-12-05
Form: S-3ASR
Chunk 69
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 the sale of certain “Benefitted Intangible
Assets” (as defined in the Investment Law) to a related foreign company if the

Benefitted Intangible Assets were acquired from
a foreign company on or after January 1, 2017 for at least NIS 200 million, and the sale receives prior approval from the IIA. It should
be noted that the proportion of income that may be considered Preferred Technological Income and enjoy the tax benefits described above
is calculated according to a nexus formula, which is based on the proportion of qualifying expenditures on intellectual property compared
to overall expenditures.

The 2017 Amendment further provides that a Preferred
Company with group consolidated revenues of at least NIS 10 billion will qualify as a “Special Preferred Technological Enterprise,”
and will enjoy a reduced corporate tax rate of 6% on “Preferred Technological Income” regardless of the company’s geographic
location within Israel. In addition, a Special Preferred Technological Enterprise will enjoy a reduced corporate tax rate of 6% on capital
gains derived from the sale of certain “Benefitted Intangible Assets” to a related foreign company if the Benefitted Intangible
Assets were either developed by the Special Preferred Enterprise or acquired from a foreign company on or after January 1, 2017, and the
sale received prior approval from the IIA. A Special Preferred Technological 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 the receipt of certain
approvals as specified in the Investment Law.

Dividends paid out of Preferred Technological
Income, which are distributed by a Preferred Technological Enterprise or a Special Preferred Technological Enterprise, are generally subject
to tax 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 (the “ITA”) allowing for a reduced tax rate). However, if such dividends are paid
to an Israeli company, no tax is required to be withheld. If such dividends are distributed to a foreign company that holds solely or
together with other foreign companies 90% or more of the Israeli company and other conditions are met, the tax rate will be 4%. Dividends
paid out to individuals may be subject to an additional surtax of 3%, as described below. In November 2021, an approval