Company: TSEM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001178913-25-001537
Chunk: 238

Company: TOWER SEMICONDUCTOR LTD
Filing Date: 2025-04-30
Form: 20-F
Item: Item 10
Chunk 238
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 someone who holds any of the aforesaid rights regarding
the manner in which he or she is to exercise such right(s), and all regardless of the source of such right.

An individual who is a substantial shareholder at the time of sale
or at any time during the preceding 12-month period, is subject to tax at a rate of 30% in respect of real capital gains derived from
the sale of shares issued by the company in which he or she is a substantial shareholder.

Individual shareholders dealing in securities in Israel are taxed
at their marginal tax rates applicable to business income (up to 47% and an additional excess tax, if applicable, as described below).

Under present Israeli tax legislation, the tax rate applicable
to real capital gain derived by Israeli resident corporations from the sale of shares of an Israeli company is the statutory Israeli corporate
income tax rate at a current rate of 23%.

69

Non-Israeli residents are exempt from Israeli capital gains tax
on any gains derived from the sale of shares in an Israeli corporation publicly traded on the TASE and/or on a foreign stock exchange,
provided such gains do not derive from a permanent establishment of such shareholders in Israel and that such shareholders did not acquire
their shares prior to the issuer’s initial public offering. However, non-Israeli corporations will not be entitled to such exemption
if Israeli residents (i) have a controlling interest of more than 25% in such non-Israeli corporation, or (ii) are the beneficiaries of
or is entitled to 25% or more of the revenues or profits of such non-Israeli corporation, whether directly or indirectly. In addition,
the sale of the shares may be exempt from Israeli capital gains tax under the provisions of an applicable tax treaty (subject to the receipt
in advance of a valid certificate from the Israel Tax Authority (“ ITA”) allowing for such an exemption). For example, the
Convention between the Government of the United States of America and the Government of Israel with respect to taxes on income, or the
“ US-Israel Tax Treaty,” generally exempts U. S. residents from Israeli capital gains tax in connection with such sale, provided
that (i) the U. S. resident owned, directly or indirectly, less than 10% of the Israeli resident company’s voting power at any time
within the 12-month period preceding such sale; (ii) the seller, if an individual, has been present in Israel for less than 183 days (in
the aggregate) during the taxable