Company: PGYWW
Filing Date: 2025-12-05
Form Type: S-3ASR
Source: 0000950103-25-015781
Chunk: 63

Company: Pagaya Technologies Ltd.
Filing Date: 2025-12-05
Form: S-3ASR
Chunk 63
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.S. Holder; and |

| · | an additional tax equal to the interest charge generally applicable to underpayments of tax will be imposed on the U.S. Holder in  
 respect of the tax attributable to each such other taxable year of such U.S. Holder included in such U.S. Holder’s holding period. |

If Pagaya is a PFIC for any taxable year during
which a U.S. Holder owns Pagaya’s Class A Ordinary Shares, it will generally continue to be treated as a PFIC with respect to the
U.S. Holder even if Pagaya ceases to be a PFIC for a subsequent taxable year, unless the U.S. Holder makes a “deemed sale”
election (that may require the U.S. Holder to recognize income under the Default PFIC Regime’s rules).

QEF Election and Not Available Mark-to-Market Election

In general, if a company is a PFIC, a U.S. shareholder
may avoid the Default PFIC Regime by making a timely and effective “qualified electing fund” election under Section 1295 of
the Code (a “QEF Election”) for such shareholder’s First PFIC Holding Year. In order to comply with the requirements
of a QEF Election with respect to Class A Ordinary Shares, a U.S. Holder must receive certain information from Pagaya. Because Pagaya
does not intend to provide such information, however, the QEF Election will not be available to U.S. Holders with respect to Class A Ordinary
Shares.

Alternatively, if a U.S. Holder, at the close
of its taxable year, owns (or is deemed to own) shares in a PFIC that are treated as marketable stock (discussed further below), the U.S.
Holder may make a mark-to-market election (a “Mark-to-Market Election”) with respect to such shares for such taxable year.
A U.S. Holder that makes a valid Mark-to-Market Election for such holder’s First PFIC Holding Year generally will not be subject
to the Default PFIC Regime with respect to its Class A Ordinary Shares as long as such shares continue to be treated as marketable stock.
Instead, the U.S. Holder generally will include as ordinary income for each year that Pagaya is treated as a PFIC, the excess, if any,
of the fair market value of its Class A Ordinary Shares at the end of its taxable year over the adjusted basis in its Class A Ordinary
Shares. The U.S. Holder