Company: FSTWF
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-044386
Chunk: 130

Company: FST Corp.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 10
Chunk 130
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COME TAX CONSEQUENCES OF THE OWNERSHIP AND DISPOSITION
OF ORDINARY SHARES. IN ADDITION, THE U. S. FEDERAL INCOME TAX TREATMENT OF THE BENEFICIAL OWNERS OF ORDINARY SHARES MAY BE AFFECTED
BY MATTERS NOT DISCUSSED HEREIN AND DEPENDS IN SOME INSTANCES ON DETERMINATIONS OF FACT AND INTERPRETATIONS OF COMPLEX PROVISIONS OF U. S. FEDERAL
INCOME TAX LAW FOR WHICH NO CLEAR PRECEDENT OR AUTHORITY MAY BE AVAILABLE. HOLDERS SHOULD CONSULT WITH THEIR TAX ADVISORS REGARDING
THE PARTICULAR TAX CONSEQUENCES TO THEM OF THE OWNERSHIP AND DISPOSITION OF ORDINARY SHARES, INCLUDING THE APPLICABILITY AND EFFECTS OF
U. S. FEDERAL, STATE, LOCAL, AND OTHER TAX LAWS.

Our Tax Residence for U. S. Federal Income
Tax Purposes

Under current U. S. federal
income tax law, a corporation generally is considered a resident for U. S. federal income tax purposes in its place of organization
or incorporation. Accordingly, under the generally applicable U. S. federal income tax rules, we would generally be classified as
a non-U. S. corporation (and, therefore, not a U. S. tax resident). Section 7874 of the Code and the Treasury Regulations
promulgated thereunder, however, contain specific rules (more fully discussed below) that may cause a non-U. S. corporation to be
treated as a U. S. corporation for U. S. federal income tax purposes. If it were determined that we should be taxed as a U. S. corporation
for U. S. federal income tax purposes under section 7874 of the Code, we would be liable for U. S. federal income tax on our income
like any other U. S. corporation, and certain distributions made by us to non-U. S. holders of ordinary shares would be subject
to U. S. withholding tax at the rate of 30% or such lower rate as provided by an applicable treaty. As a result, taxation as a U. S. corporation
could have a material adverse effect on our financial position and results from operations. The section 7874 rules are complex and require
analysis of all relevant facts and circumstances, and there is limited guidance and significant uncertainties as to their application.

Under section 7874 of the Code,
a corporation created or