Company: GCTS
Filing Date: 2025-04-23
Form Type: S-3
Source: 0001104659-25-038103
Chunk: 76

Company: GCT Semiconductor Holding, Inc.
Filing Date: 2025-04-23
Form: S-3
Chunk 76
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 by the applicable
withholding agent, including cash distributions on other property or sale proceeds from Warrants or other property subsequently paid or
credited to such holder. Any distribution not constituting a dividend will be treated first as reducing (but not below zero) the non-U.S.
Holder’s adjusted tax basis in its shares of our Common Stock and, to the extent such distribution exceeds the non-U.S. Holder’s
adjusted tax basis, as gain realized from the sale or other disposition of the Common Stock, which will be treated as described under
“Gain on Sale, Taxable Exchange or Other Taxable Disposition of Common Stock and Warrants” below. In addition, if we
determine that we are classified as a “United States real property holding corporation” (see “Gain on Sale, Taxable Exchange or Other Taxable Disposition of Common Stock and Warrants” below), we will withhold 15% of any distribution that exceeds
our current and accumulated earnings and profits.

Dividends
we pay to a non-U.S. Holder that are effectively connected with such non-U.S. Holder’s conduct of a trade or business within the
United States (or if a tax treaty applies are attributable to a U.S. permanent establishment or fixed base maintained by the non-U.S.
Holder) will generally not be subject to U.S. withholding tax, provided such non-U.S. Holder complies with certain certification and disclosure
requirements (usually by providing an IRS Form W-8ECI). Instead, such dividends will generally be subject to U.S. federal income
tax, net of certain deductions, at the same graduated individual or corporate rates applicable to U.S. Holders. If the non-U.S. Holder
is a corporation, dividends that are effectively connected income may also be subject to a “branch profits tax” at a rate
of 30% (or such lower rate as may be specified by an applicable income tax treaty).

| 39 |

Exercise of a Warrant

The U.S.
federal income tax treatment of a non-U.S. Holder’s exercise of a Warrant generally will correspond to the U.S. federal income tax
treatment of the exercise of a Warrant by a U.S. Holder, as described under “U.S. Holders-Exercise of a Warrant” above,
although to the extent a cashless exercise results in a taxable exchange, the tax consequences to the non-U.S. Holder would be the same
as those described below in “Non-U.S