Company: FSTWF
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-044386
Chunk: 78

Company: FST Corp.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 4A
Chunk 78
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 general corporate expenses and travel. Personnel-related expenses primarily include salaries and benefits compensation.

Research and Development Expenses

The R& D expenses include:

  Personnel related expenses, including salaries and benefits                                      

  Expenses related to materials, suppliers and third-party services;  

  An allocated portion of overhead expenses, such as facility  

The
Group’s research and development expenses for the years ended December 31, 2024 and 2023 range of3.6% to
5.3% of its revenue.

Other Income

The Group’s other income
primarily consists of interest expense, net, foreign exchange gain, investment gain/loss on long-term investment and government grants.

Income Tax Expense

The
Group’s income tax expense primarily consists of current tax(benefits) expenses
and deferred tax(benefits) expenses.

Cayman Islands

The Company was incorporated
in the Cayman Islands. Under the current laws of the Cayman Islands, the Company is not subject to income or capital gains taxes.

Taiwan

FST is subject to a 23.45%
combined tax rate, consisting of a statutory income tax rate of 20%, a 5% undistributed earnings tax, and the interaction of these taxes,
under the laws of Taiwan.

United States

FST American, Inc. is subject
to a federal statutory income tax rate of 21% and respective state income tax rate. The subsidiary is subject to a global intangible low-taxed
income tax (“ GILTI”), which is a new tax on certain off-shore earnings at an effective rate of 10.5% (increasing to 13.125%
for tax years beginning after December 31, 2025) with a partial offset for foreign tax credits.

The state corporate income
tax rate in California, Colorado and Arizona are 9.93%, 4.55% and 4.90%, respectively.

Japan

FST Japan LLC was mainly subject
to Japanese national and local income taxes, inhabitant tax, and enterprise tax, which, in the aggregate, represent a statutory income
tax rate of approximately 23.2% for the years ended December 31, 2024 and 2023, respectively.

Results of Operations

The table below sets forth
the results of operations for the year ended December 31, 2024 and the year ended December 31, 2023:

                                                                                For the Years Ended                                  
                                                                                       December 31,                                  
                                                                                               2024