Company: OSRH
Filing Date: 2025-04-22
Form Type: 10-K
Source: 0001213900-25-034116
Chunk: 344

Company: OSR Holdings, Inc.
Filing Date: 2025-04-22
Form: 10-K
Item: Item 1A
Chunk 344
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, the place where the day-to-day management of senior managers
is carried out, and the place where accounting documents are routinely recorded and kept, etc.

Because many of our directors and executive officers are located in
Korea, it is possible that the Company will have a “place of effective management” in Korea. Additionally, the Company and
certain of its subsidiaries will have physical business offices in Korea, where several of our key executive officers will conduct business.
Further, our board of directors includes several Korean citizens who will make significant decisions regarding our business, including
decisions regarding capital raising and acquisitions.

Additional reasons the Korean tax authorities may conclude that we
have a “place of effective management” in Korea include that (i) Mr. Kuk Hyoun Hwang, OSR’ Chairman of the
Board of Directors, is a Korean national, and Mr. Hwang spends most of the year working in Korea and will continue to do so after
the Closing; (ii) most of the members of the board of directors of our largest subsidiary, OSR, are Korean; and (iii) after
the Closing, important documents, including the accounting documents of our domestic business, may be maintained and controlled in Korea.
If we are deemed to have a “place of effective management” in Korea, we will be required to file annual corporate income tax
returns with the Korean tax authorities and be subject to Korean corporate income tax. Currently, the applicable rates are 11% (inclusive
of local corporate taxes) for taxable income up to 200 million Korean Won, 22% (inclusive of local corporate taxes) for taxable income
exceeding 200 million Korean Won and less than 20 billion Korean Won, 24.2% (inclusive of local corporate taxes) for taxable
income greater than 20 billion won and less than 300 billion Korean Won, and 27.5% (inclusive of local corporate tax) for taxable
income greater than 300 billion Korean Won. Taxable income would include any worldwide income, such as dividends we receive from
our Korean operating company and any interest income earned outside of Korea. If we are required to pay Korean corporate income tax, it
may reduce our cash flow and negatively impact the returns to investors.

55

If we are deemed to have a “permanent establishment” in
Korea, we will be subject to Korean corporate income tax with regards to any