Company: PDCC
Filing Date: 2025-07-18
Form Type: N-2
Source: 0001214659-25-010613
Chunk: 158

Company: Pearl Diver Credit Co Inc.
Filing Date: 2025-07-18
Form: N-2
Chunk 158
---
. There can be no assurances we will make such election.

| 90 |

As a RIC, we generally will not be subject to
federal income tax on our investment company taxable income (as that term is defined in the Code) and net capital gains (the excess of
net long-term capital gains over net short-term capital loss), if any, that we distribute in each tax year as dividends to stockholders,
provided that we distribute dividends of an amount at least equal to the sum of 90% of our investment company taxable income, determined
without regard to any deduction for dividends paid, plus 90% of our net tax-exempt interest income for such tax year, or the “Distribution
Requirement.” We intend to distribute to our stockholders, at least annually, substantially all of our investment company taxable
income, net tax-exempt income and net capital gains. In order to avoid incurring a nondeductible 4% federal excise tax obligation, the
Code requires that we distribute (or be deemed to have distributed) by December 31 of each calendar year dividends of an amount generally
at least equal to the sum of (i) 98% of our ordinary income (taking into account certain deferrals and elections) for such calendar year,
(ii) 98.2% of our capital gain net income, adjusted for certain ordinary losses and generally computed on the basis of the one-year period
ending on October 31 of such calendar year) and (iii) 100% of any ordinary income and capital gain net income from prior calendar years
(as previously computed) that were not paid out during such calendar years and on which we incurred no U.S. federal income tax, or the
“Excise Tax Distribution Requirement.” Any dividends declared by us during October, November or December of any calendar year,
payable to stockholders of record on a specified date in such a month and actually paid during January of the following calendar year,
will be treated for federal income tax purposes as if it had been paid by us, as well as received by our U.S. stockholders, on December
31 of the calendar year in which the distribution was declared.

We may incur in the future the 4% federal excise
tax on a portion of our income and capital gains. While we intend to distribute income and capital gains to minimize our exposure to the
4% federal excise tax, we may not be able to, or may choose not to, distribute amounts sufficient to avoid the imposition of