Company: PDCC
Filing Date: 2025-09-19
Form Type: 424B2
Source: 0001214659-25-013974
Chunk: 188

Company: Pearl Diver Credit Co Inc.
Filing Date: 2025-09-19
Form: 424B2
Chunk 188
---
 securities denominated in a foreign currency, to the extent attributable to fluctuations in exchange rates
between the acquisition and disposition dates, are also treated as ordinary income or loss. The U.S. Treasury Department has authority
to issue regulations that would exclude foreign currency gains from the Qualifying Income Test described above if such gains are not directly
related to the Company’s business of investing in stock or securities (or options and futures with respect to stock or securities).
Accordingly, regulations may be issued in the future that could treat some or all of a Fund’s non-U.S. currency gains as non-qualifying
income, thereby potentially jeopardizing the Company’s status as a RIC for all years to which the regulations are applicable.

| 108 |

We may incur a liability for foreign withholding
taxes as a result of investment in stock or securities of foreign corporations. If, at any year-end, more than 50% of our assets are comprised
of stock or securities of foreign corporations, we may elect, for U.S. federal income tax purposes, to treat foreign income or withholding
taxes paid by us as paid shareholders. For any year that we are eligible for and make such an election, each shareholder will be required
to include in income an amount equal to his or her allocable share of qualified foreign income taxes paid by us, and shareholders will
be entitled, subject to certain holding period requirements and other limitations, to credit their portions of these amounts against their
United States federal income tax due, if any, or to deduct their portions from their United States taxable income, if any. No deductions
for foreign taxes paid by us may be claimed, however, by non-corporate shareholders who do not itemize deductions. We will make this election
only if we deem the election to be in the best interests of shareholders. If we do not qualify to make this election or qualify, but do
not choose to do so, the imposition of such foreign taxes would directly reduce the return to an investor from an investment in the Company.
Under certain circumstances, if we receive a refund of foreign taxes paid in respect of a prior year, the value of Fund shares could be
affected or any foreign tax credits or deductions passed through to shareholders in respect of our foreign taxes for the current year
could be reduced.

Our transactions in futures contracts and options
will be subject to special provisions of the Code that, among other things, may affect the character of our realized gains and losses
realized (i.e., may