Company: FLDDW
Filing Date: 2025-01-22
Form Type: S-4/A
Source: 0001213900-25-005202
Chunk: 286

Company: Fold Holdings, Inc.
Filing Date: 2025-01-22
Form: S-4/A
Chunk 286
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 connection with the Merger. 169 Distributions on New Fold Common Stock; Redemption of Emerald Public Shares Treated as Distributions The gross amount of any distribution that is made out of New Fold (or in the case of a redemption of Emerald Public Shares treated as a distribution, Emerald)’s current and accumulated earnings and profits (as determined for U.S. federal income tax purposes) will be taxable to a Non -U.S. Holder as ordinary dividend income on the date such distribution is actually or constructively received by such Non -U.S. Holder. Distributions in excess of current and accumulated earnings and profits will constitute a return of capital that will be applied against and reduce (but not below zero) the Non -U.S. Holder’s adjusted tax basis in New Fold Common Stock or the Emerald Public Shares redeemed, as applicable. Any remaining excess will be treated as gain realized on the sale or other disposition of New Fold Common Stock or the Emerald Public Shares, as applicable, and will be treated as described below under the section entitled “ Non -U .S. Holders — Redemption of Emerald Public Shares Treated as Sale or Exchange.” Dividends paid to a Non -U.S. Holder of New Fold Common Stock (or the proceeds received by a Non -U.S. Holder in a redemption of Emerald Public Shares treated as dividends) will be subject to withholding of U.S. federal income tax at a 30% rate, unless such Non -U.S. Holder is eligible for a reduced rate of withholding tax under an applicable income tax treaty and provides proper certification of its eligibility for such reduced rate as described below. However, dividends that are effectively connected with the conduct of a trade or business by the Non -U.S. Holder within the United States (and, if required by an applicable income tax treaty, are attributable to a U.S. permanent establishment or fixed base of the Non -U.S. Holder) will not be subject to such withholding tax, provided certain certification and disclosure requirements are satisfied (generally by providing an IRS Form W -8ECI). Instead, such dividends will be subject to United States federal income tax on a net income basis in the same manner as if the Non -U.S. Holder were a United States person as defined under the Code. Any such effectively connected dividends received by a foreign corporation may be subject to an additional “branch profits tax” at a 30% rate or such lower rate as may be specified by an applicable income tax treaty. A Non -U.S. Holder who