Company: DSX-PB
Filing Date: 2025-03-21
Form Type: 20-F
Source: 0001562762-25-000050
Chunk: 209

Company: DIANA SHIPPING INC.
Filing Date: 2025-03-21
Form: 20-F
Item: Item 10
Chunk 209
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 various

parts of the world, including to or from U. S. ports. Unless exempt from U. S. federal income taxation

under

Section 883

of

the

Code,

the

Company

will

be

subject

to

U. S. federal

income

taxation,

in

the

manner

discussed below,

to the extent

its Shipping Income

is considered derived

from sources within

the United

States.

In

the

year

ended

December

31,

2024,

approximately

6.1%

of

the

Company’s

shipping

income

was

attributable to the transportation of cargoes either to or from a U. S. port. Accordingly, approximately 3.1%

of

the

Company’s

shipping

income

would

be

treated

as

derived

from

U. S. sources

for

the

year

ended

December 31, 2024. In

the absence of

exemption from U. S. federal income

tax under Section 883 of

the

Code, the Company

would have been

subject to a

4% tax on its

gross U. S. source

Shipping Income, equal

to $0.3 million for the year ended December 31, 2024.

Application of Exemption under Section 883 of the Code

Under the relevant provisions of Section 883 of the Code and the final Treasury Regulations promulgated

thereunder,

a

foreign

corporation

will

be

exempt

from

U. S. federal

income

taxation

on

its

U. S. source

Shipping Income if:

(1)

It is organized in a qualified foreign country which, as defined, is one

that grants an equivalent

exemption from

tax to

corporations organized

in the

United States

in respect

of the

Shipping

Income for which exemption

is being claimed under

Section 883 of

the Code, or the

“ Country of

Organization Requirement”; and

(2)

It can satisfy any one of the following two stock ownership requirements:

•

more

than

50%

of

its

stock,

in

terms

of

value,

is

beneficially

owned

by

qualified

shareholders

which,

as

defined,

includes

individuals

who

are

residents

of

a

qualified

foreign country,