Company: FSTWF
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-044386
Chunk: 131

Company: FST Corp.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 10
Chunk 131
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 organized outside the United States (i. e., a non-U. S. corporation) will nevertheless be treated as
a U. S. corporation for U. S. federal income tax purposes (and, therefore, be a U. S. tax resident subject to U. S. federal
income tax on its worldwide income) if (1) the non-U. S. corporation directly or indirectly acquires substantially all of the
assets held directly or indirectly by a U. S. corporation, (2) the non-U. S. corporation’s expanded affiliated group
does not have substantial business activities in the non-U. S. corporation’s country of organization or incorporation relative
to the expanded affiliated group’s worldwide activities (the “substantial business activities test”), and (3) the
shareholders of the acquired U. S. corporation hold at least 80% (by either vote or value) of the stock of the non-U. S. acquiring
corporation after the acquisition by reason of holding shares in the U. S. acquired corporation, as determined under complex share
ownership rules described below, which are uncertain in their application in many circumstances and are intended to increase the percentage
ownership for these purposes (the “ Ownership Test”). For this purpose, “expanded affiliated group” generally means
the foreign acquiring corporation and all subsidiary corporations in which such foreign corporation owns, directly or indirectly, more
than 50% of the stock (by vote and value) after the foreign acquiring corporation’s acquisition of the assets of the U. S. corporation.

We do not expect to satisfy
the substantial business activities test, and accordingly, we must determine whether the Ownership Test has been met.

Based on the complex rules
for determining share ownership under section 7874 of the Code and Treasury Regulations promulgated thereunder and certain factual assumptions,
our view is that immediately after completion of the Business Combination, former shareholders of Tristar owned, by reason of owning (or
being treated as owning) stock of Tristar, less than 80% of the voting power and value of the ordinary shares. Therefore, we do not expect
to satisfy the Ownership Test, and our view is that section 7874 applies in a manner such that we are not treated as a U. S. corporation
for U. S. federal income tax purposes. However, our position depends in part on the position that the Ownership Test is determined
after the Business Combination for purposes of section 7874 of the Code.

The application