Company: FSTWF
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-044386
Chunk: 139

Company: FST Corp.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 10
Chunk 139
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 the U. S. Holder will include as ordinary income each
year that we are treated as a PFIC the excess, if any, of the fair market value of its ordinary shares at the end of its taxable year
over the adjusted basis in its ordinary shares. The U. S. Holder also will be allowed to take an ordinary loss in respect of the excess,
if any, of the adjusted basis of its ordinary shares over the fair market value of its ordinary shares at the end of its taxable year
(but only to the extent of the net amount of previously recognized income as a result of the mark-to-market election). The U. S. Holder’s
adjusted tax basis in its ordinary shares will be adjusted to reflect any such income or loss amounts, and any further gain recognized
on a sale or other taxable disposition of the ordinary shares in a taxable year in which we are treated as a PFIC will be treated as ordinary
income. Special tax rules may also apply if a U. S. Holder makes a mark-to-market election for a taxable year after the first
taxable year in which the U. S. Holder holds (or is deemed to hold) its ordinary shares and for which we are treated as a PFIC.

The mark-to-market election
is available only for stock that is regularly traded on a national securities exchange that is registered with the Securities and Exchange
Commission, including Nasdaq (on which the ordinary shares are listed), or on a foreign exchange or market that the IRS determines has
rules sufficient to ensure that the market price represents a legitimate and sound fair market value. Such stock generally will be “regularly
traded” for any calendar year during which such stock is traded, other than in de minimis quantities, on at least 15 days during
each calendar quarter, but no assurances can be given in this regard with respect to the ordinary shares. U. S. Holders should consult
their own tax advisors regarding the availability and tax consequences of a mark-to-market election in respect of ordinary shares
under their particular circumstances.

If we are a PFIC and, at any
time, has a foreign subsidiary that is classified as a PFIC, U. S. Holders generally would be deemed to own a portion of the shares
of such lower-tier PFIC, and generally could incur liability for the deferred tax and interest charge described above if we were
to receive a distribution from, or dispose of all or part of our interest in, the lower-tier PFIC (even