Company: PGYWW
Filing Date: 2025-12-05
Form Type: S-3ASR
Source: 0000950103-25-015781
Chunk: 58

Company: Pagaya Technologies Ltd.
Filing Date: 2025-12-05
Form: S-3ASR
Chunk 58
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 the previous year and certain other requirements are met.
U.S. Holders should consult their tax advisors regarding the availability of the lower rate for any dividends paid with respect to Class
A Ordinary Shares.

Subject to certain exceptions, dividends on Class
A Ordinary Shares will generally be treated as non-U.S. source income and will generally constitute “passive category” income
for U.S. foreign tax credit limitation purposes. As described under “Certain Material Israeli Tax Considerations,”
a U.S. Holder will be subject to Israeli withholding taxes on such dividends. Subject to certain conditions and limitations, some of which
vary depending upon the U.S. Holder’s circumstances, a U.S. Holder may be eligible to claim a foreign tax credit in respect of any
Israeli income taxes paid or withheld with respect to dividends on Class A Ordinary Shares. The rules governing foreign tax credits and
the deductibility of foreign taxes are complex. For example, Treasury Regulations provide that, in the absence of an election to apply
the benefits of an applicable income tax treaty, in order for foreign

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income taxes to be creditable the relevant foreign income tax rules
must be consistent with certain U.S. federal income tax principles, and Pagaya has not determined whether the Israeli income tax system
meets these requirements. The IRS has released notices that provide relief from certain of the provisions of the Treasury Regulations
described above for taxable years ending before the date that a notice or other guidance withdrawing or modifying the temporary relief
is issued (or any later date specified in such notice or other guidance). In lieu of claiming a credit for non-U.S. taxes, a U.S. Holder
may elect to deduct such taxes (including Israeli taxes) in computing its taxable income for U.S. federal income tax purposes, provided
that the U.S. Holder does not elect to claim a foreign tax credit for any non-U.S. income taxes paid or accrued for the relevant taxable
year. All U.S. Holders, whether or not they are Treaty-eligible, should consult their tax advisors regarding the availability of foreign
tax credits and the deductibility of foreign taxes in light of their particular circumstances.

Disposition of Class A Ordinary Shares

The following discussion is subject to the discussion
under “—Passive foreign investment company considerations” below.

Upon a sale, exchange, or other taxable disposition
of Class A Ordinary Shares, a U.S. Holder will generally recognize capital gain or loss. The amount of gain or loss