Company: DSX-PB
Filing Date: 2025-03-21
Form Type: 20-F
Source: 0001562762-25-000050
Chunk: 213

Company: DIANA SHIPPING INC.
Filing Date: 2025-03-21
Form: 20-F
Item: Item 10
Chunk 213
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derived from

U. S. sources,

the

maximum effective

rate of

U. S. federal

income tax

on the

Company’s Shipping

Income would

never exceed

2% under the 4% Gross Basis Tax Regime.

Based

on

its

U. S.

source Shipping

Income

for

the

2024

taxable

year

and

in

the

absence

of

exemption

under Section 883

of the Code,

the Company would

be subject to

$0.3 of U. S.

federal income tax

under

the 4% Gross Basis Tax Regime.

The 4%

Gross Basis

Tax Regime would not apply

to U. S. source

Shipping Income

to the extent

considered

to be

“effectively connected”

with the

conduct of

a U. S.

trade or

business.

In the

absence of

exemption

104

under Section

883 of

the Code,

such “effectively

connected” U. S.

source Shipping

Income, net

of applicable

deductions, would be

subject to U. S.

federal income tax

currently imposed at

a rate of

21%.

In addition,

earnings

“effectively

connected”

with

the

conduct

of

such

U. S.

trade

or

business,

as

determined

after

allowance for certain adjustments, and certain

interest paid or deemed paid attributable to

the conduct of

the U. S. trade or

business may be

subject to U. S.

federal branch profits

tax imposed at

a rate of 30%.

The

Company’s U. S. source Shipping Income would be considered “effectively connected” with the conduct of

a U. S. trade or business only if: (1) the

Company has, or is considered to have, a fixed place

or business

in the United States involved in the earning

of Shipping Income; and (2) substantially

all of the Company’s

U. S. source Shipping Income

is attributable to regularly

scheduled transportation, such

as the operation

of

a vessel that followed

a published schedule with

repeated sailings at regular

intervals between the same

points for voyages that begin or

end in the United States, or,

in the case of income from

the chartering of

a vessel