Company: OSRH
Filing Date: 2025-04-22
Form Type: 10-K
Source: 0001213900-25-034116
Chunk: 108

Company: OSR Holdings, Inc.
Filing Date: 2025-04-22
Form: 10-K
Item: Item 1
Chunk 108
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 preliminary or auxiliary business
activities. In addition, in order for a foreign corporation to be deemed to have a “permanent establishment” in Korea through
a Dependent Agent, the agent must exercise the right to enter into contracts in the name of the foreign corporation on a regular basis
in Korea, and the authority must be essential and important to the business activities, rather than preliminary or auxiliary.

We do not expect that we are likely to be deemed as having a “permanent
establishment” in Korea, because we do not have a principal office, branch office or any other form of business office in Korea,
nor do we have any physical fixed place of business in Korea that we have the right to dispose of or use. Further, our essential and important
business activities, including the acquisition of companies, are made in the United States through the decisions of our board and
we have not authorized any person or entity to make decisions regarding whether or not to enter into a business acquisition agreement
in Korea.

However, we cannot rule out, on a conservative basis, the possibility
that we may be deemed to have a “permanent establishment” in Korea after the Closing given that (i) Mr. Hwang, our
Chairman of the Board of OSR, is a Korean national and will continue to perform his duties primarily in Korea and (ii) most of the
members of the board of directors of OSR who will be performing substantial functions in connection with our business after the Closing
are Korean. If 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