Company: GAUZ
Filing Date: 2025-03-11
Form Type: 20-F
Source: 0001213900-25-022437
Chunk: 119

Company: Gauzy Ltd.
Filing Date: 2025-03-11
Form: 20-F
Item: Item 10
Chunk 119
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 or more during the relevant taxable year. In any such case, the sale, exchange or disposition
of such shares by the Treaty U. S. Resident would be subject to Israeli taxes (unless exempt under Israeli domestic law as described
above).

Regardless of whether or not
non-Israeli shareholders may be liable for Israeli capital gains tax on the sale of our ordinary shares, the payment of the consideration
may be subject to withholding of Israeli tax at source and holders of our ordinary shares may be required to demonstrate that they are
exempt from tax on their capital gains in order to avoid withholding at source at the time of sale. Specifically, the ITA may require
shareholders who are not liable for Israeli capital gains tax on such a sale to sign declarations in forms prescribed by the ITA, provide
documents (including, for example, a certificate of residency) or obtain a specific exemption from the ITA to confirm their status as
non-Israeli residents (and, in the absence of such declarations or exemptions, the ITA may require the purchaser of the shares to
withhold tax at source).

Taxation on Receipt of Dividends

Non-Israeli residents
(whether individuals or corporations) are generally subject to Israeli income tax on the receipt of dividends paid on our ordinary shares
at the rate of 25% (or 30% in the case such shareholder is a “substantial shareholder,” as defined above, at the time of
the distribution or at any time during the preceding 12-month period), which tax will be withheld at source, unless relief is provided
in an applicable tax treaty between Israel and the shareholder’s country of residence (provided that a certificate from the ITA
allowing for such relief is obtained in advance). Dividends paid on publicly traded shares, like our ordinary shares, are generally subject
to Israeli withholding tax at a rate of 25% so long as the shares are registered with a nominee company (whether or not the recipient
is a “substantial shareholder”), unless a lower rate is provided under an applicable tax treaty (provided that a certificate
from the ITA allowing for such reduced withholding tax rate is obtained in advance). However, a distribution of dividends to non-Israeli residents
is subject to withholding tax at source at a rate of 20% if the dividend is distributed from income attributed to a Preferred Enterprise
or Preferred Technological Enterprise, or such lower rate as may be provided under an applicable tax treaty (provided that a certificate
from the ITA allowing