Company: NKLR
Filing Date: 2025-09-03
Form Type: S-4/A
Source: 0001213900-25-084087
Chunk: 242

Company: Terra Innovatum Global N.V.
Filing Date: 2025-09-03
Form: S-4/A
Chunk 242
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 source income to utilize foreign tax credits attributable to any Italian 12withholding tax imposed on a sale, exchange, redemption or other taxable disposition. U.S. holders should consult their tax advisors as to the availability of and limitations on any foreign tax credit attributable to Italian withholding tax. Passive Foreign Investment Company Rules A non -U.S. corporation, such as PubCo, will be a PFIC for U.S. federal income tax purposes in any taxable year in which, after applying relevant look -throughrules with respect to the income and assets of its subsidiaries, either (i) 75% or more of its gross income is passive income, or (ii) 50% or more of the value of its assets in any taxable year (generally based on the quarterly average of the value of its assets during such year) is attributable to assets, including cash, that produce passive income or are held for the production of passive income. Passive income generally includes dividends, interest, certain royalties and rents, annuities, net gains from the sale or exchange of property producing such income and net foreign currency gains. Based on the expected composition of PubCo’s gross assets and income and the manner in which PubCo expects to operate its business in future years, PubCo does not expect to be classified as a PFIC for U.S. federal income tax purposes for PubCo’s current taxable year or in the foreseeable future. Whether PubCo is a PFIC is a factual determination made annually, and PubCo’s status could change depending, among other things, upon changes in the composition and relative value of its gross receipts and assets, which may be determined by reference to the price of PubCo Ordinary Shares (which could fluctuate significantly). If PubCo were a PFIC in any year during which a U.S. holder owns PubCo Ordinary Shares, subject to the discussion below regarding the mark -to -marketor QEF elections, a U.S. holder generally will be subject to special rules (regardless of whether PubCo continues to be a PFIC) with respect to (i) any “excess distribution” (generally, any distributions received by a U.S. holder on its PubCo Ordinary Shares in a taxable year that are greater than 125% of the average annual distributions received by the U.S. holder in the three preceding taxable years or, if shorter, the U.S. holder’s holding period for the PubCo Ordinary Shares) and (ii) any gain realized on the sale or other disposition of PubCo Ordinary Shares