Ares Capital Corporation Announces Tax Reporting Information for Calendar Year 2025

Key Terms

qualified dividend income regulatory

Qualified dividend income is dividend money that meets government rules so it’s taxed at the same lower rates as long-term capital gains instead of at higher ordinary income rates. For investors this matters because it increases the after-tax return on dividend-paying stocks or funds—similar to getting a discount on your tax bill if you hold the investment long enough and the payout comes from approved sources.

dividends received deduction regulatory

A tax rule that lets a corporation exclude a portion of dividends it receives from other corporations when calculating its taxable income, reducing the tax bite on those payments. Think of it as a coupon that prevents the same earnings from being taxed twice when they pass between companies; for investors, it affects a firm’s after-tax profits, available cash for reinvestment or shareholder payouts, and therefore valuation and dividend sustainability.

capital gain dividend regulatory

A capital gain dividend is the payout investors receive from an investment fund when the fund sells holdings for a profit and passes those realized gains along to shareholders. Think of it like a business selling assets for more than it paid and distributing the profit to owners; the payment can boost your cash but is usually taxable and reduces the fund’s net asset value. Investors watch these distributions because they affect after‑tax returns and short‑term cash flow.

IRC section 871(k) regulatory

IRC Section 871(k) is a U.S. tax rule that treats payments from certain financial contracts tied to U.S. stock dividends—such as equity swaps, total return swaps or similar arrangements—as if they were the underlying dividend, so they are subject to U.S. withholding tax when paid to non-U.S. persons. For investors this matters because it can reduce net returns and raise the cost of cross-border hedging and derivative trading, much like adding a hidden tax to a trade that mimics owning a stock.

NEW YORK--(BUSINESS WIRE)-- Ares Capital Corporation (“Ares Capital” or the “Company”) (NASDAQ: ARCC) announced today the tax treatment of the Company’s 2025 common stock distributions (CUSIP #: 04010L103).

						Ordinary Income Per Share
Record Date		Payable Date		Total Paid Per Share		Ordinary Rate		20% Rate (1)		Long Term Capital Gains per Share (2)		Interest - Related Dividends (3)
3/14/2025		3/31/2025		$ 0.4800		$ 0.339128		$ 0.140872		$ 0.0000		84.7500%
6/13/2025		6/30/2025		$ 0.4800		$ 0.339128		$ 0.140872		$ 0.0000		84.7500%
9/15/2025		9/30/2025		$ 0.4800		$ 0.339128		$ 0.140872		$ 0.0000		85.6410%
12/15/2025		12/30/2025		$ 0.4800		$ 0.339128		$ 0.140872		$ 0.0000		85.3158%
				$ 1.9200		$ 1.356512		$ 0.563488		$ 0.0000
% of Total Dividends Paid Per Share				100.0000%		70.65172%		29.34828%		0.0000%

(1)	The Company hereby designates these distributions as amounts eligible for treatment as qualified dividend income in accordance with IRC section 854(b) as well as eligible for the dividends received deduction available to certain U.S. domestic corporations.
(2)	No portion of the Company’s distributions is designated as an amount eligible for treatment as a capital gain dividend in accordance with IRC sections 852(b)(3) and 854(a).
(3)	The Company hereby designates the above percentages of each of the total dividends by payment date as “interest-related dividends” within the meaning of IRC section 871(k).

This press release is not intended to constitute tax, legal, investment, or other professional advice. This is general information and should not be relied upon for tax purposes. Stockholders should consult their tax advisor for tax guidance pertinent to specific facts and circumstances.

ABOUT ARES CAPITAL CORPORATION

Founded in 2004, Ares Capital is a leading specialty finance company focused on providing direct loans and other investments in private middle market companies in the United States. Ares Capital’s objective is to source and invest in high-quality borrowers that need capital to achieve their business goals, which often times can lead to economic growth and employment. Ares Capital believes its loans and other investments in these companies can help generate attractive levels of current income and potential capital appreciation for investors. Ares Capital, through its investment manager, utilizes its extensive, direct origination capabilities and incumbent borrower relationships to source and underwrite predominantly senior secured loans but also subordinated debt and equity investments. Ares Capital has elected to be regulated as a business development company (“BDC”) and was the largest publicly traded BDC by market capitalization as of December 31, 2025. Ares Capital is externally managed by a subsidiary of Ares Management Corporation (NYSE:ARES), a publicly traded, leading global alternative investment manager. For more information about Ares Capital, visit www.arescapitalcorp.com.

FORWARD-LOOKING STATEMENTS

Statements included herein or on the webcast/conference call may constitute “forward-looking statements,” which relate to future events or Ares Capital’s future performance or financial condition. These statements are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results and conditions may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in Ares Capital’s filings with the Securities and Exchange Commission. Ares Capital undertakes no duty to update any forward-looking statements made herein or on the webcast/conference call.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260130660440/en/

Ares Capital Corporation

Carl G. Drake

John Stilmar

888-818-5298

Source: Ares Capital Corporation