Company: CGCT
Filing Date: 2025-01-29
Form Type: S-1
Source: 0001104659-25-006780
Chunk: 321

Company: Cartesian Growth Corp III
Filing Date: 2025-01-29
Form: S-1
Chunk 321
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 a QEF election by attaching
a completed IRS Form 8621 (Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund),
including the information provided in a PFIC annual information statement, to a timely filed United States federal income tax return
for the tax year to which the election relates. Retroactive QEF elections generally may be made only by filing a protective statement
with such return and if certain other conditions are met or with the consent of the IRS. U.S. Holders should consult their
tax advisors regarding the availability and tax consequences of a retroactive QEF election under their particular circumstances.

In order to comply with the requirements of a
QEF election, a U.S. Holder must receive a PFIC annual information statement from us. If we determine we are a PFIC for any taxable
year, upon written request, we will endeavor to provide to a U.S. Holder such information as the IRS may require, including a PFIC
annual information statement, in order to enable the U.S. Holder to make and maintain a QEF election, but there is no assurance
that we will timely provide such required information. There is also no assurance that we will have timely knowledge of our status as
a PFIC in the future or of the required information to be provided.

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If a U.S. Holder has made a QEF election
with respect to our Class A ordinary shares, and the excess distribution rules discussed above do not apply to such shares
(because of a timely QEF election for our first taxable year as a PFIC in which the U.S. Holder holds (or is deemed to hold) such
shares or a purge of the PFIC taint pursuant to a purging election, as described above), any gain recognized on the sale of our Class A
ordinary shares generally will be taxable as capital gain and no additional interest charge will be imposed under the PFIC rules. As
discussed above, if we are a PFIC for any taxable year, a U.S. Holder of our Class A ordinary shares that has made a QEF election
will be currently taxed on its pro rata share of our earnings and profits, whether or not distributed for such year. A subsequent distribution
of such earnings and profits that were previously included in income generally should not be taxable when distributed to such U.S. Holder.
The tax basis of a U.S. Holder’s shares in a QEF will be increased by amounts