Company: PLSAY
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001884082-25-000012
Chunk: 74

Company: Polestar Automotive Holding UK PLC
Filing Date: 2025-05-09
Form: 20-F
Item: Item 3
Chunk 74
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 the gain, if any, they derive from the sale or other disposition of their interests in the PFIC.

Based on the current and projected composition of the Company’s income and assets, the Company does not believe it was classified as a PFIC for its most recent taxable year ended on December 31, 2024 and does not expect to be classified as a PFIC for the current taxable year or, to the best of its current estimates, for subsequent taxable years. However, the application of the PFIC rules is subject to uncertainty as the composition of the Company’s income and assets may change in the future and, therefore, no assurances can be provided that the Company will not be a PFIC for the current taxable year or in a future year. It is also possible that the IRS would not agree with the Company’s conclusion, or that U. S. tax laws could change significantly. For additional information, see Item 10. E “Additional Information - Taxation - Material U. S. Federal Income Tax Considerations.”

As a result of the Business Combination, the IRS may not agree that the Company is a foreign corporation for U. S. federal tax purposes.

A corporation generally is considered to be a tax resident for U. S. federal income tax purposes in the jurisdiction of its organization or incorporation. Accordingly, under the generally applicable U. S. federal income tax rules, the Company, which is incorporated under the laws of England and Wales, would be classified as a non-U. S. corporation (and, therefore, not a U. S. tax resident) for U. S. federal income tax purposes. Section 7874 of the Code provides an exception to this general rule under which a non-U. S. incorporated entity may, in certain circumstances, be treated as a U. S. corporation for U. S. federal income tax purposes. If the Company were to be treated as a U. S. corporation for U. S. federal income tax purposes as a result of the Business Combination, it could be subject to

substantial liability for additional U. S. income taxes. However, dividend payments to U. S. Holders (as defined below) would generally constitute “qualified dividends” and be subject to tax at the rates accorded to long-term capital gains. In addition, even if the Company is not treated as a U. S. corporation, it may be subject to unfavorable treatment as a “surrogate foreign corporation” in the event that, following the Business Combination, ownership attributable