Company: DSX-PB
Filing Date: 2025-03-21
Form Type: 20-F
Source: 0001562762-25-000050
Chunk: 54

Company: DIANA SHIPPING INC.
Filing Date: 2025-03-21
Form: 20-F
Item: Item 3
Chunk 54
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for U. S. federal

income tax return

reporting purposes. However,

there

are factual circumstances beyond our control that could cause us to lose the benefit of this tax exemption

in future years

and thereby

become subject

to U. S.

federal income

tax on

our U. S. source

shipping income.

For example, in

certain circumstances we

may no longer

qualify for exemption

under Code Section 883

for

a particular taxable year if shareholders, other than “qualified shareholders”, with a five percent or greater

interest in our common shares owned, in the aggregate, 50% or more of our outstanding common shares

for more

than half

the days

during the

taxable year.

Due to

the factual

nature of the

issues involved, we

can give no assurances on our tax-exempt status or that of any of our subsidiaries.

If we or

our subsidiaries are not

entitled to this exemption

under Section 883 of

the Code for any

taxable

year, we or our subsidiaries would

be subject for those

years to a 4%

U. S. federal income

tax on our gross

U. S.-source shipping income. The imposition of this taxation

could have a negative effect on our business

and would

result in

decreased earnings

available for

distribution to

our shareholders,

although, for

the 2024

taxable year, we estimate

our maximum

U. S. federal

income tax

liability to be

immaterial if we

were subject

to

this

U. S.

federal

income

tax.

See

“ Item

10.

Additional

Information - E.

Taxation"

for

a

more

comprehensive discussion of U. S. federal income tax considerations.

U. S. federal tax authorities

could treat us as

a “passive foreign investment

company”, which could

have adverse U. S. federal income tax consequences to U. S. shareholders.

A foreign corporation will be treated as a

“passive foreign investment company”, or PFIC, for U. S. federal

income tax purposes if

either (1) at least 75%

of its gross income

for any taxable year

consists of certain

types of “passive income”

or (2) at least 50% of

the average value of the

corporation's assets produce or