Company: PGYWW
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001883085-25-000050
Chunk: 75

Company: Pagaya Technologies Ltd.
Filing Date: 2025-03-12
Form: 10-K
Item: Item 16
Chunk 75
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 is subject to a corporate tax rate of 23%. Pagaya has received an approval from the Israeli Tax authorities for Preferred Technological Enterprise (“PTE”) status and received approval on November 18, 2021. The Company is eligible for PTE status which is implemented commencing 2020. Income from a PTE is subject to 12% tax rate.Foreign Exchange Regulations in IsraelUnder the Foreign Exchange Regulations, the Company calculates its tax liability in U.S. Dollars according to certain orders. The tax liability, as calculated in U.S. Dollars is translated into NIS according to the exchange rate as of December 31st of each year.  Non-Israeli subsidiaries are taxed according to the tax laws in their respective countries of residence. The components of loss before income taxes are as follows (in thousands): December 31,202420232022Domestic (Israel)$(8,480)$(53,292)$(225,429)Foreign(412,642)(127,876)(50,945)Total loss before income taxes$(421,122)$(181,168)$(276,374)The income tax expense (benefit) consists of (in thousands): December 31,202420232022Current:Domestic$(247)$593$(4,063)Foreign24,74116,60114,233Total current24,49417,19410,170Deferred:Domestic82(461)6,233Foreign—(1,162)(3)Total deferred82(1,623)6,230Total income tax provision$24,576 $15,571 $16,400 Effective Tax Rate A reconciliation of the Company’s effective tax rate to the statutory tax rate of the Company is as follows (in thousands): 

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Table of Contents

December 31,202420232022Loss before income taxes$(421,122)$(181,168)$(276,374)Israel statutory income tax rate23 %23 %23 %Theoretical income taxes at statutory rate(96,858)(41,669)(63,566)Preferred technological enterprise benefit949 5,891 24,859 Deferred tax assets for which valuation allowance was provided82,602 16,067 36,851 Permanent differences10,033 7,643 17,792 Uncertain tax positions9,035 13,500 7,580 Prior year taxes(1,416)(2,312)(4,506