Company: GCTS
Filing Date: 2025-04-23
Form Type: S-3
Source: 0001104659-25-038103
Chunk: 77

Company: GCT Semiconductor Holding, Inc.
Filing Date: 2025-04-23
Form: S-3
Chunk 77
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. Holders-Gain on Sale, Exchange or Other Taxable Disposition of Common Stock and Warrants.”

Redemption of Warrants for Common Stock

The U.S.
federal income tax treatment to a non-U.S. Holder upon a redemption of Warrants for Common Stock described in this prospectus under “Description of Securities - Warrants” generally will correspond to the U.S. federal income tax treatment to a U.S. Holder, as described
in the second paragraph under “U.S. Holders- Sale, Exchange,Redemptionor Expiration of a Warrant.”

Gain on Sale, Exchange or Other Taxable Disposition of Common Stock and Warrants

A non-U.S.
Holder will generally not be subject to U.S. federal income or withholding tax in respect of gain recognized on a sale, taxable exchange
or other taxable disposition of our Common Stock or a sale, taxable exchange, expiration, redemption or other taxable disposition of our
Warrants unless:

| ● | the gain is effectively connected with the conduct of a trade or business by the non-U.S. Holder within the United States (and, if an applicable tax treaty so requires, is attributable to a U.S. permanent establishment or fixed base maintained by the non-U.S. Holder); |

| ● | the non-U.S. Holder is an individual who is present in the United States for 183 days or more in the taxable year of disposition and certain other conditions are met; or |

Gain
described in the first bullet point above will be subject to tax at generally applicable U.S. federal income tax rates. Any gains described
in the first bullet point above of a non-U.S. Holder that is a foreign corporation may also be subject to an additional “branch
profits tax” at a 30% rate (or lower applicable treaty rate). Gain described in the second bullet point above will generally be
subject to a flat 30% U.S. federal income tax. Non-U.S. Holders are urged to consult their tax advisors regarding possible eligibility
for benefits under income tax treaties.

If the
third bullet point above applies to a non-U.S. Holder, gain recognized by such holder on the sale, exchange or other disposition of our
Common Stock or Warrants will be subject to tax at generally applicable U.S. federal income tax rates. In addition, a buyer of our Common
Stock or Warrants from such holder may be required to withhold U.S. income tax at a rate of 15% of the amount realized upon