Company: PENG
Filing Date: 2025-03-24
Form Type: PRE 14A
Source: 0001193125-25-060930
Chunk: 70

Company: Penguin Solutions, Inc.
Filing Date: 2025-03-24
Form: PRE 14A
Chunk 70
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 respect to
shares of Penguin Solutions Delaware common stock will generally constitute a dividend for U.S. federal income tax purposes to the extent that such distribution is paid out of Penguin Solutions Delaware’s current or accumulated earnings and
profits (as determined under U.S. federal income tax principles). To the extent that the amount of the distribution exceeds Penguin Solutions Delaware’s current and accumulated earnings and profits (as determined under U.S. federal income tax
principles), such excess will be treated first as a tax-free return of the Non-U.S. Holder’s tax basis in the shares of Penguin Solutions Delaware common stock, and
then, to the extent such excess amount exceeds the Non-U.S. Holder’s tax basis in the shares of Penguin Solutions Delaware common stock, as capital gain.

Subject to the discussion below regarding effectively connected income, dividends paid to a Non-U.S.
Holder with respect to such Non-U.S. Holder’s shares of Penguin Solutions Delaware common stock generally will be subject to U.S. federal withholding tax at a rate of 30% of the gross amount of the
dividends (or a lower rate specified by an applicable income tax treaty, provided that the Non-U.S. Holder furnishes a valid IRS Form W-8BEN or W-8BEN-E (or other applicable documentation) certifying its qualification for the lower treaty rate). A Non-U.S. Holder that does not
timely furnish the required documentation, but that qualifies for a reduced treaty rate, may obtain a refund of any excess amounts withheld by timely filing an appropriate claim for refund with the IRS.
Non-U.S. Holders should consult their tax advisors regarding their entitlement to benefits under any applicable tax treaty.

If dividends paid to a Non-U.S. Holder are effectively connected with the Non-U.S. Holder’s conduct of a trade or business within the United States (and, if required by an applicable income tax treaty, the Non-U.S. Holder maintains a permanent
establishment in the United States to which such dividends are attributable), the Non-U.S. Holder generally will not be subject to the 30% U.S. federal withholding tax described in the previous paragraph
provided that the Non-U.S. Holder furnishes a valid IRS Form W-8ECI, certifying that the dividends are effectively connected with the
Non-U.S. Holder’s conduct of a trade or business within the United States. Any such effectively connected dividends will instead be subject to U.S. federal income tax on a net income basis at the regular
rates