Company: PDCC
Filing Date: 2025-09-16
Form Type: N-2/A
Source: 0001214659-25-013826
Chunk: 172

Company: Pearl Diver Credit Co Inc.
Filing Date: 2025-09-16
Form: N-2/A
Chunk 172
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tax status of all distributions promptly after the close of each calendar year.

For federal income tax purposes, distributions
paid out of our current or accumulated earnings and profits will, except in the case of distributions of qualified dividend income and
capital gain dividends described below, be taxable as ordinary dividend income. Certain income distributions paid by us (whether paid
in cash or reinvested in additional shares of our stock) to individual taxpayers are taxed at rates applicable to net long-term capital
gains. This tax treatment applies only if certain holding period requirements and other requirements are satisfied by the stockholder
and the dividends are attributable to qualified dividend income received by us, and there can be no assurance as to what portion of our
dividend distributions will qualify for favorable treatment. For this purpose, “qualified dividend income” means dividends
received from United States corporations and “qualified foreign corporations” (e.g., foreign corporations incorporated
in a possession of the United States or in certain countries with a comprehensive tax treaty with the United States, or the stock of which
is readily tradable on an established securities market in the United States), provided that we satisfy certain holding period and other
requirements in respect of the stock of such corporations. The maximum individual rate applicable to qualified dividend income is either
15% or 20%, depending on whether the individual’s income exceeds certain threshold amounts. Given our investment strategies, it
is not anticipated that a significant portion of our dividends will be eligible to be treated as qualified dividend income.

Dividends distributed from our investment company
taxable income which have been designated by us and received by certain of our corporate stockholders will qualify for the DRD to the
extent of the amount of qualifying dividends received by us from certain domestic corporations for the tax year. A dividend received us
will not be treated as a qualifying dividend (i) to the extent the stock on which the dividend is paid is considered to be “debt-financed”
(generally, acquired with borrowed funds), (ii) if we fail to meet certain holding period requirements for the stock on which the dividend
is paid or (iii) to the extent we are under an obligation (pursuant to a short sale or otherwise) to make related payments with respect
to positions in substantially similar or related property. Moreover, the DRD may be disallowed or reduced if an otherwise eligible corporate
stockholder fails to satisfy the foregoing requirements with respect to shares of our stock or by application of the Code. Given our investment
str