Company: PDCC
Filing Date: 2025-07-18
Form Type: N-2
Source: 0001214659-25-010613
Chunk: 144

Company: Pearl Diver Credit Co Inc.
Filing Date: 2025-07-18
Form: N-2
Chunk 144
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 our taxable year
will include their attributable share of the retained gain in their income for the year as a long-term capital gain, and will be entitled
to a tax credit or refund for the tax deemed paid on their behalf by us.

RIC Tax Qualification

We intend to elect to be treated and to qualify
each year as a RIC under the Code. Accordingly, we satisfy certain requirements relating to sources of our income and diversification
of our total assets and to satisfy certain distribution requirements, so as to maintain our RIC status and to avoid paying U.S. federal
income or excise tax thereon. To the extent we qualify for treatment as a RIC and satisfy the applicable distribution requirements, we
will not be subject to U.S. federal income tax on our income to the extent paid to holders of our common stock in the form of dividends
or capital gains distributions.

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As a RIC, we are not subject to federal income
tax on our investment company taxable income (as that term is defined in the Code, but without regard to the deductions for dividend paid)
and net capital gains (the excess of net long-term capital gains over net short-term capital loss), if any, that we timely distribute
in each taxable year to holders of our common stock, provided that we distribute an amount at least equal to the sum of 90% of our investment
company taxable income and 90% of our net tax-exempt interest income for such taxable year. We intend to distribute to holders of our
common stock, 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 generally distribute (or be deemed
to have distributed) by December 31 of each calendar year an amount at least equal to the sum of (i) 98% of our ordinary income (taking
into account certain deferrals and elections) for such year, (ii) 98.2% of our capital gains net income, generally computed on the basis
of the one-year period ending on October 31 of such year, and (iii) 100% of any ordinary income and capital gains net income from the
prior year (as previously computed) that were not paid out during such year and on which we paid no U.S. federal income tax.

Additional Information

The tax treatment and characterization of our
distributions