Company: DSX-PB
Filing Date: 2025-03-21
Form Type: 20-F
Source: 0001562762-25-000050
Chunk: 212

Company: DIANA SHIPPING INC.
Filing Date: 2025-03-21
Form: 20-F
Item: Item 10
Chunk 212
---
year.

However,

there

can

be

no assurance

that the

Company will

continue

to

satisfy the

Publicly Traded

Test

in

future

taxable

years. For

example,

the

Company

could

be

subject

to

the

5%

Override

Rule

if

another

5%

Shareholder in

combination with

the Company’s

existing 5%

Shareholders were

to own

50% or

more of

the Company’s

common stock.

In such a

case, the Company

would be subject

to the 5%

Override Rule

unless

it

could

establish that,

among the

shares of

the

common

stock owned

by

the

5%

Shareholders,

sufficient shares are

owned by

qualified shareholders,

for purposes

of Section

883 of

the Code,

to preclude

non-qualified shareholders from owning 50% or more of the Company’s common stock for more than half

the

number of

days during

the

taxable year.

The requirements

of establishing

this exception

to the

5%

Override Rule are onerous and there is no assurance the

Company will be able to satisfy them.

Based

on

the

foregoing,

the

Company

believes

that

it

satisfied

the

Publicly

Traded

Test

and

therefore

believes that it was exempt from U. S. federal income tax

under Section 883 of the Code, during the 2024

taxable year and intends to take this position on its 2024 U. S. federal

income tax returns.

Taxation in Absence of Exemption Under Section 883 of the Code

To

the

extent the

benefits of

Section

883

of

the

Code

are

unavailable with

respect

to

any

item

of

U. S.

source Shipping Income, the Company and each of its subsidiaries

would be subject to a 4% tax imposed

on such income

by Section 887 of

the Code on

a gross basis, without

the benefit of

deductions, which is

referred to as

the “4%

Gross Basis Tax Regime”. Since

under the sourcing

rules described

above, no

more

than 50%

of the

Company’s Shipping

Income would

be treated

as being