Company: TSEM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001178913-25-001537
Chunk: 250

Company: TOWER SEMICONDUCTOR LTD
Filing Date: 2025-04-30
Form: 20-F
Item: Item 10
Chunk 250
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 subject to back-up withholding tax
on dividends paid in the United States on ordinary shares unless the holder provides an IRS certification or otherwise establishes an
exemption. Holders will be subject to information reporting and back-up withholding tax on proceeds paid within the United States from
the disposition of ordinary shares unless the holder provides an IRS certification or otherwise establishes an exemption. Information
reporting and back-up withholding may also apply to dividends and proceeds paid outside the United States that are paid by certain “ U. S.
payors” or “ U. S. middlemen,” as defined in the applicable Treasury regulations, including:

(1) a
U. S. person;

(2) the
government of the U. S. or the government of any state or political subdivision of any state (or any agency or instrumentality of any of
these governmental units);

(3) a
controlled foreign corporation;

(4) a
foreign partnership that is either engaged in a U. S. trade or business or whose United States partners in the aggregate hold more than
50% of the income or capital interests in the partnership;

(5) a
foreign person that derives 50% or more of its gross income for certain periods from the conduct of a trade or business in the U. S.; or

(6) a
U. S. branch of a foreign bank or insurance company.

The back-up withholding tax rate is 24%. Back-up withholding and
information reporting will not apply to payments made to Non-U. S. Holders if they have provided the required certification that they are
not United States persons.

In the case of payments by a payor or middleman to a foreign simple
trust, foreign grantor trust or foreign partnership, other than payments to a holder that qualifies as a withholding foreign trust or
a withholding foreign partnership within the meaning of the Treasury regulations and payments that are effectively connected with the
conduct of a trade or business in the United States, the beneficiaries of the foreign simple trust, the person treated as the owner of
the foreign grantor trust or the partners of the foreign partnership will be required to provide the certification discussed above in
order to establish an exemption from backup withholding tax and information reporting requirements.

The amount of any back-up withholding may be allowed as a credit
against a U. S. Holder’s U. S. federal income tax liability and may entitle the holder to a refund, provided that required information
is furnished to the IRS.

77

F. DIVID