Company: OSRH
Filing Date: 2025-04-22
Form Type: 10-K
Source: 0001213900-25-034116
Chunk: 346

Company: OSR Holdings, Inc.
Filing Date: 2025-04-22
Form: 10-K
Item: Item 1A
Chunk 346
---
 we are deemed to have a “permanent establishment” as defined under Korean tax law, we would be required to
file annual corporate income tax returns with the Korean tax office and be subject to Korean corporate income tax. The applicable rates
are 9% (inclusive of local corporate taxes) for taxable income up to 200 million Korean Won, 19% (inclusive of local corporate taxes)
for taxable income exceeding 200 million Korean Won and less than 20 billion Korean Won, 21% (inclusive of local corporate taxes)
for taxable income greater than 20 billion won and less than 300 billion Korean Won, and 24% (inclusive of local corporate tax)
for taxable income greater than 300 billion Korean Won. Taxable income includes any Korean source income attributable to or effectively
connected with such permanent establishment, such as dividends we receive from our Korean operating company. If we are required to pay
Korean corporate income tax, it may reduce our cash flow and negatively impact the returns to investors.

New or higher taxes resulting from changes in tax regulations
or the interpretation thereof in South Korea could adversely affect our results of operations and financial condition in the future.

New tax laws and regulations, and uncertainties with respect to future
tax policies pose risks to us. Changes in tax-related laws and regulations, and interpretations thereof, can create additional tax
burdens on us and our businesses by increasing tax rates and fees, creating new taxes, limiting tax deductions, and/or eliminating tax-based incentives
and non-taxed income. In addition, tax authorities and competent courts may interpret tax regulations differently than us, which
could result in tax litigation and associated costs and penalties in part due to the novelty and complexity of new regulation.

A focus on regulating copyright and patent infringement by the
Korean government subjects OSR to extra scrutiny in its operations and could subject OSR to sanctions, fines, or other penalties, which
could adversely affect the Company’s business and operations in Korea.

The Korean government has recently focused on addressing copyright
and patent infringement in Korea. Despite measures we have taken to address copyright and patent infringement, the Korean government may
subject us to sanctions, fines, or other penalties, which could adversely affect our business and operations in Korea.

56

We are a global organization with business operations in the
United States, Korea, Switzerland, and in other European Union countries, which makes us subject to a variety of additional risks
that may negatively impact