Company: PGYWW
Filing Date: 2025-12-05
Form Type: S-3ASR
Source: 0000950103-25-015781
Chunk: 57

Company: Pagaya Technologies Ltd.
Filing Date: 2025-12-05
Form: S-3ASR
Chunk 57
---
 Ordinary Shares should consult their tax advisors regarding the U.S. federal income tax considerations to them of an investment
in Class A Ordinary Shares.

THE U.S. FEDERAL INCOME TAX TREATMENT OF THE OWNERSHIP AND DISPOSITION OF CLASS A ORDINARY SHARES TO ANY PARTICULAR HOLDER WILL DEPEND ON THE HOLDER’S PARTICULAR TAX CIRCUMSTANCES. EACH HOLDER SHOULD CONSULT ITS TAX ADVISOR WITH RESPECT TO THE PARTICULAR TAX CONSEQUENCES TO SUCH HOLDER OF THE OWNERSHIP AND DISPOSITION OF CLASS A ORDINARY SHARES, INCLUDING THE EFFECTS OF U.S. FEDERAL, STATE, LOCAL AND NON-U.S. TAX LAWS.

Taxation of dividends and other distributions on Class A Ordinary Shares

The following discussion is subject to the discussion
under “—Passive foreign investment company considerations” below.

Distributions of cash or other property to a U.S.
Holder with respect to such U.S. Holder’s Class A Ordinary Shares will generally be treated as dividends for U.S. federal income
tax purposes to the extent paid out of Pagaya’s current or accumulated earnings and profits (as determined under U.S. federal income
tax principles). Distributions in excess of such earnings and profits will generally reduce the U.S. Holder’s basis in its Class
A Ordinary Shares (but not below zero) and, to the extent in excess of such basis, will be treated as gain from the sale or exchange of
such Class A Ordinary Shares. Because Pagaya does not determine its earnings and profits under U.S. federal income tax principles, distributions
made by Pagaya will generally be reported as dividends. In the case of corporate U.S. Holders, such dividends will generally be subject
to tax at regular U.S. income tax rates and will not be eligible for the dividends-received deduction generally allowed to domestic corporations
in respect of dividends received from other domestic corporations.

In the case of non-corporate U.S. Holders, such
dividends will generally be subject to tax at preferential long-term capital gains rates only if (i) Class A Ordinary Shares are readily
tradable on an established securities market in the United States or (ii) Pagaya is eligible for the benefits of the income tax treaty
between the United States and Israel (the “Treaty”), in each case, provided that Pagaya is not (and is not treated with respect
to a particular U.S. Holder) as a PFIC at the time the dividend was paid or in