Company: PRIF-PJ
Filing Date: 2025-03-26
Form Type: N-2
Source: 0001554625-25-000027
Chunk: 183

Company: Priority Income Fund, Inc.
Filing Date: 2025-03-26
Form: N-2
Chunk 183
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 treaty applies, attributable to a permanent

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establishment maintained by the non-U.S. stockholder in the United States), no amount of U.S. federal tax will be required to be withheld from such distributions if the non-U.S. preferred stockholder complies with applicable certification and disclosure requirements, although such distributions will be subject to U.S. federal income tax at the rates applicable to U.S. persons.

Subject to the discussions below concerning FATCA, actual or deemed distributions of our net capital gains to a non-U.S. preferred stockholder, and gains realized by a non-U.S. stockholder upon the sale of shares of Series M Term Preferred Stock, will not be subject to U.S. federal withholding tax and generally will not be subject to U.S. federal income tax unless (i) the distributions or gains, as the case may be, are effectively connected with the conduct of a U.S. trade or business of the non-U.S. preferred stockholder (and, if an income tax treaty applies, are attributable to a permanent establishment maintained by the non-U.S. preferred stockholder in the United States), or (ii) such non-U.S. preferred stockholder is an individual present in the United States for 183 days or more during the year of the distribution or gain.

For a corporate non-U.S. preferred stockholder, distributions and gains realized upon the sale of shares of Series M Term Preferred Stock that are effectively connected to a U.S. trade or business may, under certain circumstances, be subject to an additional “branch profits tax” at a 30% rate (or at a lower rate if provided for by an applicable treaty).

If we distribute our net capital gains in the form of deemed rather than actual distributions, a non-U.S. preferred stockholder will be entitled to a U.S. federal income tax credit or tax refund equal to the non-U.S. preferred stockholder’s allocable share of the U.S. federal income tax we pay on the capital gains deemed to have been distributed; however, in order to obtain the refund, the non-U.S. preferred stockholder may be required to obtain a U.S. taxpayer identification number and file a U.S. federal income tax return even if the non-U.S. preferred stockholder would not otherwise be required to obtain a U.S. taxpayer identification number or file a U.S. federal income tax return. A non-U.S. preferred stockholder who is a non-resident alien individual, and who is