Company: FSTWF
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-044386
Chunk: 138

Company: FST Corp.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 10
Chunk 138
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 U. S. Holders from making or maintaining a “qualified electing fund” election under
section 1295 of the Code.

If we were determined to be
a PFIC for any taxable year (or portion thereof) that is included in the holding period of a U. S. Holder of ordinary shares and,
in the case of ordinary shares, the U. S. Holder did not make a valid “mark-to-market” election, such U. S. Holder
generally will be subject to special rules with respect to: (i) any gain recognized by the U. S. Holder on the sale or other
disposition of ordinary shares and (ii) any “excess distribution” made to the U. S. Holder (generally, any distributions
to such U. S. Holder during a taxable year of the U. S. Holder that are greater than 125% of the average annual distributions
received by such U. S. Holder in respect of the ordinary shares during the three preceding taxable years of such U. S. Holder
or, if shorter, such U. S. Holder’s holding period for such ordinary shares).

Under these rules:

  the U. S. Holder’s gain or excess distribution                                         

  the amount allocated to the U. S. Holder’s taxable                                                                          

  the amount allocated to other taxable years (or portions                                                                           

  the interest charge generally applicable to underpayments                                                       

Although a determination as
to our PFIC status will be made annually, an initial determination that we are a PFIC will generally apply for subsequent years to
a U. S. Holder who held ordinary shares while we were a PFIC, whether or not we meet the test for PFIC status in those subsequent years.

If a U. S. Holder, at the
close of its taxable year, owns shares in a PFIC that are treated as marketable stock, the U. S. Holder may make a mark-to-market election
with respect to such shares for such taxable year. If the U. S. Holder makes a valid mark-to-market election for the first taxable
year of the U. S. Holder in which the U. S. Holder holds (or is deemed to hold) ordinary shares and for which we are determined
to be a PFIC, such holder generally will not be subject to the PFIC rules described above in respect to its ordinary shares as long as
such shares continue to be treated as marketable stock. Instead, in general,