Company: PDCC
Filing Date: 2025-03-11
Form Type: N-CSR
Source: 0001398344-25-005419
Chunk: 16

Company: Pearl Diver Credit Co Inc.
Filing Date: 2025-03-11
Form: N-CSR
Chunk 16
---
 90% of its investment company taxable income, as defined by the Code.

| 16 | www.pearldivercreditcompany.com |

Because U.S. federal income tax regulations differ
from U.S. GAAP, distributions in accordance with tax regulations may differ from net investment income and realized gains recognized for
financial reporting purposes. Differences may be permanent or temporary. Permanent differences are reclassified among capital accounts
in the financial statements to reflect their tax character. Temporary differences arise when certain items of income, expense, gain or
loss are recognized at some time in the future. Differences in classification may also result from the treatment of short-term gains as
ordinary income for federal income tax purposes. The tax basis components of distributable earnings may differ from the amounts reflected
in the Statement of Assets and Liabilities due to temporary book/tax differences arising primarily from partnerships and passive foreign
investment company investments.

Distributions are determined in accordance with federal
income tax regulations, which differ from U.S. GAAP, and, therefore, may differ significantly in amount or character from net investment
income and realized gains for financial reporting purposes. Financial reporting records are adjusted for permanent book/tax differences
to reflect tax character but are not adjusted for temporary differences.

As of December 31, 2024, the components of accumulated earnings/(deficit)
on a tax basis were as follows:

| Accumulated capital losses                 
 Net unrealized appreciation on investments |     |   | (1,072,125 
  2,585,633 | ) |
|:-------------------------------------------|:----|:--|-----------:|:--|
| Total                                      |     | $ |  1,513,508 |   |

The difference between book basis and tax
basis distributable earnings and unrealized appreciation/(depreciation) is primarily attributable to qualified electing funds, investments
in partnerships, and certain other investments.

As of December 31, 2024, the federal income tax cost and net unrealized
depreciation on securities were as follows:

| Cost of investments for tax purposes                          |     | $ | 146,444,629 |   |
| Gross tax unrealized appreciation                             |     |   |   6,046,319 |   |
| Gross tax unrealized depreciation                             |     |   |  (3,460,686 | ) |
| Net tax unrealized appreciation (depreciation) on investments |     | $ |   2,585,633 |   |