Company: FSTWF
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001213900-25-044386
Chunk: 65

Company: FST Corp.
Filing Date: 2025-05-15
Form: 20-F
Item: Item 4
Chunk 65
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 permitted by law.

Regulations on Employment and Social Insurance

The labor law in Taiwan is
regulated mainly by the Labor Standards Act, last amended on June 10, 2020. The Labor Standards Act governs the terms and conditions
of employment such as working hours, holidays, rest periods, wages, overtime, leave, and termination of employment. According to
Labor Standard Act, an employer is required to reach an agreement on salary with the employees, in which the agreed salary shall meet
with the minimum amount set by the competent authority. Violations of the Labor Standards Act may result in fines and other administrative
sanctions, and serious violations may result in criminal liabilities.

In order to protect workers’
safety and health and to prevent occupational accidents, the employers in Taiwan are also required to comply with the Occupational Safety
and Health Act. According to the Occupational Safety and Health Act, the employer shall arrange safety equipment to prevent any emergency.
In addition, the employer shall provide safety education and trainings for the employees which shall enable the employees to protect themselves
when any accident occurs.

Taiwan governmental authorities
have passed a variety of laws and regulations regarding social insurance and employee’s pension from time to time, including, among
others, the Labor Insurance Act, the National Health Insurance Act, the Labor Pension Act, and the Employment Insurance Act. Pursuant
to these laws and regulations, Taiwan companies must make contributions at specified levels for their employees to the relevant social
insurance and pension funds. Failure to comply with such laws and regulations may result in various fines and legal sanctions.

The Company has generally been
compliant with all requirements under the aforementioned labor laws and regulations. There were several instances of minor sanctions where
the Company had been required by the Occupational Safety and Health Administration of the Ministry of Labor to rectify certain potential
working condition hazards and practices and was subject to minor fines, although all of these issues had been quickly addressed and rectified
by the Company. The Company has not experienced any lawsuits or disputes with its employees that became subject to administrative review
of the Taiwan Labor Bureau or ended in litigation.

Regulations on Taxation

According to the Taiwan Income
Tax Act, a company incorporated in Taiwan is a Taiwan tax resident and will be subject to 20% corporate income tax on its worldwide income.
A non-resident company will be subject to 20% corporate income tax on its Taiwan-sourced income. If a resident company does
not distribute its financial earnings generated in a year to its shareholders