Company: DRTSW
Filing Date: 2025-03-12
Form Type: 20-F
Source: 0001213900-25-023187
Chunk: 258

Company: Alpha Tau Medical Ltd.
Filing Date: 2025-03-12
Form: 20-F
Item: Item 10
Chunk 258
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16%. Income
derived by a Preferred Company from a “ Special Preferred Enterprise” (as such term is defined in the Investment Law) would
be entitled, during a benefits period of 10 years, to further reduced tax rates of 8%, or 5% if the Special Preferred Enterprise is located
in a specified development zone. Since January 1, 2017, the definition for “ Special Preferred Enterprise” includes less stringent
conditions.

Dividends distributed from
income which is attributed to a “ Preferred Enterprise” or to a Special Preferred Enterprise will be generally subject to withholding
tax at source at the following rates: (i) Israeli resident corporations-0%, (although, if such dividends are subsequently distributed
to individuals or a non-Israeli company the below rates detailed in sub sections (ii) and (iii) shall apply) (ii) Israeli resident individuals-20%
(iii) non-Israeli residents (individuals and corporations)-25% or 30%, and subject to the receipt in advance of a valid certificate from
the Israel Tax Authority (“ ITA”) allowing for a reduced tax rate-20%, or a reduced tax rate under the provisions of any applicable
double tax treaty.

We currently do not intend
to implement the 2011 Amendment.

New tax benefits under
the 2017 amendment that became effective on January 1, 2017

The 2017 Amendment provides
that a technology company satisfying certain conditions will qualify as a “ Preferred Technology Enterprise” and will thereby
enjoy a reduced corporate tax rate of 12% on income that qualifies as “ Preferred Technology Income”, as defined in the Investment
Law. The tax rate is further reduced to 7.5% for a Preferred Technology Enterprise located in development zone “ A”. In addition,
a Preferred Technology Company will enjoy a reduced corporate tax rate of 12% on capital gain derived from 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 Israel
Innovation Authority. The 2017 Amendment further provides that a technology company satisfying certain conditions (among others, group
consolidated revenues of at least NIS 10 billion) will qualify as a “ Special Preferred Technology Enterprise” and will thereby
enjoy a reduced corporate tax rate of