Company: PGYWW
Filing Date: 2025-12-05
Form Type: S-3ASR
Source: 0000950103-25-015781
Chunk: 62

Company: Pagaya Technologies Ltd.
Filing Date: 2025-12-05
Form: S-3ASR
Chunk 62
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IC with respect to such holder’s investment unless (i) it ceased to be a PFIC, and (ii) the
U.S. Holder has made a “deemed sale” election under the PFIC rules.

Application of PFIC rules to Class A Ordinary Shares

If (i) Pagaya is a PFIC for any taxable year (or
portion thereof) that is included in the holding period of a U.S. Holder and (ii) the U.S. Holder does not make a timely and effective
Mark-to-Market Election (as defined below) for Pagaya’s first taxable year as a PFIC in which the U.S. Holder held (or was deemed
to hold) Class A Ordinary Shares (such taxable year as it relates to each U.S. Holder, the “First PFIC Holding Year”), then
such U.S. Holder generally will be subject to special rules (the “Default PFIC Regime”) with respect to:

| · | any gain recognized by the U.S. Holder on the sale or other disposition of its Class A Ordinary Shares; and |

| · | any “excess distribution” made to the U.S. Holder (generally, any distributions to such U.S. Holder during a taxable year                     
 of the U.S. Holder that are greater than 125% of the average annual distributions received by such U.S. Holder in respect of Class A Ordinary 
 Shares during the three preceding taxable years of such U.S. Holder or, if shorter, such U.S. Holder’s holding period for such Class          
 A Ordinary Shares).                                                                                                                           |

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Under the Default PFIC Regime:

| · | the U.S. Holder’s gain or excess distribution will be allocated ratably over the U.S. Holder’s holding period for its 
 Class A Ordinary Shares;                                                                                              |

| · | the amount of gain allocated to the U.S. Holder’s taxable year in which the U.S. Holder recognized the gain or received the       
 excess distribution, or to the period in the U.S. Holder’s holding period before the first day of the first taxable year in which 
 Pagaya is a PFIC, will be subject to tax as ordinary income;                                                                      |

| · | the amount of gain allocated to other taxable years (or portions thereof) of the U.S. Holder included in such U.S. Holder’s  
 holding period will be subject to tax at the highest tax rate in effect for that year and applicable to the U