Company: DSX-PB
Filing Date: 2025-03-21
Form Type: 20-F
Source: 0001562762-25-000050
Chunk: 218

Company: DIANA SHIPPING INC.
Filing Date: 2025-03-21
Form: 20-F
Item: Item 10
Chunk 218
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 Company is a PFIC, the

Company will be treated as earning

and

owning its proportionate

share of the income and

assets, respectively, of any of its subsidiary

corporations

in which it owns at least 25% of the

value of the subsidiary’s stock. Income earned, or deemed

earned, by

106

the

Company

in

connection

with

the

performance

of

services

would

not

constitute

passive

income. By

contrast, rental

income would

generally constitute

passive income

unless the

Company is

treated under

specific rules as deriving its rental income in the active conduct of

a trade or business.

Based on the Company’s

current operations and future projections, the

Company does not believe that it

is,

nor

does

it

expect

to

become,

a

PFIC

with

respect

to

any

taxable

year. Although

there

is

no

legal

authority directly

on point,

the Company’s

belief is

based principally on

the position

that, for

purposes of

determining

whether

the

Company

is

a

PFIC,

the

gross

income

the

Company

derives

or

is

deemed

to

derive from

the

time

chartering and

voyage chartering

activities of

its

wholly-owned subsidiaries

should

constitute services income,

rather than rental

income. Correspondingly, the

Company believes that

such

income

does

not

constitute

passive

income,

and

the

assets

that

the

Company

or

its

wholly-owned

subsidiaries own and operate in connection with the production of such income, in particular,

the vessels,

do

not

constitute

assets

that

produce

or

are

held

for

the

production

of

passive

income

for

purposes of

determining whether the

Company is

a PFIC.

The Company

believes there

is substantial

legal authority

supporting its position consisting

of case law and

Internal Revenue Service, or

the “ IRS”, pronouncements

concerning

the

characterization

of

income

derived

from

time

charters

and

voyage

charters

as

services

income