Company: PDCC
Filing Date: 2025-09-16
Form Type: N-2/A
Source: 0001214659-25-013826
Chunk: 47

Company: Pearl Diver Credit Co Inc.
Filing Date: 2025-09-16
Form: N-2/A
Chunk 47
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 and/or maximize our after-tax return from these investments.

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 controlled foreign corporation,
or “CFC” (including equity tranche investments and certain debt tranche investments in a CLO treated as a 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). If we are
required to include such deemed distributions from a CFC in our income, we will be required to distribute such income to maintain our
RIC status regardless of whether or not the CFC makes an actual distribution during such tax year. We intend to treat our income inclusion
with respect to a CFC as qualifying income for purposes of determining our ability to be subject to tax as a RIC either if (i) there is
a distribution out of the earnings and profits of the CFC that are attributable to such income inclusion or (ii) such inclusion is derived
with respect to our business of investing in stock, securities, or currencies.

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If we are required to include amounts from CLO
securities in income prior to receiving the cash distributions representing such income, we may have to sell some of our investments at
times and/or at prices we would not consider advantageous, raise additional debt or equity capital, or forego new investment opportunities
for this purpose. If we are not able to obtain cash from other sources, we may fail to qualify for RIC tax treatment and thus become subject
to corporate-level income tax.

If a CLO in which we invest fails to comply with certain U.S. tax disclosure requirements, such CLO may be subject to withholding requirements that could materially and adversely affect our operating results and cashflows.

The U.S. Foreign Account Tax Compliance Act provisions
of the Code, or “FATCA,” imposes a withholding tax of 30% on U.S. source periodic payments, including interest and dividends
to certain non-U.S. entities, including certain non-U.S. financial institutions and investment funds, unless such non-U.S. entity complies
with certain reporting requirements regarding its U.S. account holders and its U.S. owners. Most CLOs in which we invest will be treated