Company: PDCC
Filing Date: 2025-09-16
Form Type: N-2/A
Source: 0001214659-25-013826
Chunk: 166

Company: Pearl Diver Credit Co Inc.
Filing Date: 2025-09-16
Form: N-2/A
Chunk 166
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 the QEF, even if such income is not distributed to us. Alternatively, we can elect to mark-to-market at the end of each
tax year (as well as on certain other dates described in the Code) our shares in a PFIC; in this case, we will recognize as ordinary income
any increase in the value of such shares, and as an ordinary loss any decrease in such value to the extent it does not exceed prior increases
included in our ordinary income. Under either election, we may be required to recognize in a tax year taxable income in excess of our
distributions from PFICs and our proceeds from dispositions of PFIC stock during that tax year, and we may be required to distribute such
taxable income in order to satisfy the Excise Tax Distribution Requirement or the Distribution Requirement. Applicable Treasury Regulations
generally treat our income inclusion with respect to a PFIC with respect to which we have made a qualified electing fund, or “QEF”,
election, as qualifying income for purposes of determining our ability to be subject to tax as a RIC if (i) there is a current distribution
out of the earnings and profits of the PFIC that are attributable to such income inclusion or (ii) such inclusion is derived with respect
to our business of investing in such stock, securities, or currencies.

If we hold 10% or more of the interests treated
as equity (by vote or value) for U.S. federal income tax purposes in a foreign corporation that is treated as a CFC (including equity
tranche investments and certain debt tranche investments in a CLO treated as CFC), we may be treated as receiving a deemed distribution
(taxable as ordinary income) each tax year from such foreign corporation in an amount equal to our pro rata share of the corporation’s
income for the tax year (including both ordinary earnings and capital gains), whether or not the corporation makes an actual distribution
during such tax year. In general, a foreign corporation will be classified as a CFC if more than 50% of the shares of the corporation,
measured by reference to combined voting power or value, is owned (directly, indirectly or by attribution) by U.S. Shareholders. A “U.S.
Shareholder,” for this purpose, is any U.S. person that possesses (actually or constructively) (a) 10% or more of the combined voting
power of all classes of shares of a foreign corporation, or (b