Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 98

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1
Chunk 98
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 among other things, the characterization and source of income or other tax items, the manner
in which the arm’s-length standard is applied for transfer pricing purposes, or with respect to the valuation of intellectual property.
The taxing authorities of the jurisdictions in which we operate or may operate may challenge our tax treatment of certain items or the
methodologies we use for valuing developed technology or intercompany arrangements, which could impact our worldwide effective tax rate
and harm our financial position and operating results.

Further, any changes in the tax laws governing our
activities may increase our tax expense, the amount of taxes we pay, or both. For example, the Tax Cuts and Jobs Act (the “TCJA”),
enacted on December 22, 2017, significantly reformed the U.S. federal tax code, reducing the U.S. federal corporate income
tax rate, making sweeping changes to the rules governing international business operations, and imposing new limitations on a number of
tax benefits, including deductions for business interest and the use of net operating loss carryforwards. Effective beginning in 2022,
the TCJA also eliminated the option to immediately deduct research and development expenditures and required taxpayers to amortize domestic
expenditures over five years and foreign expenditures over fifteen years. The Inflation Reduction Act of 2022 (the
“Inflation Reduction Act”), enacted on August 16, 2022, further amended the U.S. federal tax code, imposing a 15%
minimum tax on “adjusted financial statement income” of certain corporations as well as an excise tax on the repurchase or
redemption of stock by certain corporations, beginning in the 2023 tax year. In addition, over the last several years, the Organization
for Economic Cooperation and Development has been working on a Base Erosion and Profit Shifting Project that, if implemented, would change
various aspects of the existing framework under which our tax obligations are determined in many of the countries in which we may do business.
As of July 2023, nearly 140 countries have approved a framework that imposes a minimum tax rate of 15%, among other provisions. As
this framework is subject to further negotiation and implementation by each member country, the timing and ultimate impact of any such
changes on our tax obligations are uncertain. There can be no assurance that future tax law changes will not increase the rate of the
corporate income tax, impose new limitations on deductions, credits or other tax