Company: CSLMF
Filing Date: 2025-07-03
Form Type: DEFM14A
Source: 0001193125-25-155514
Chunk: 296

Company: CSLM ACQUISITION CORP.
Filing Date: 2025-07-03
Form: DEFM14A
Chunk 296
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ation.

Definition and General Taxation of a PFIC

A non-U.S. corporation will be classified as a PFIC for any taxable year (a) if at least 75% of
its gross income consists of passive income, such as dividends, interest, rents and royalties (except for rents and royalties earned

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in the active conduct of a trade or business), and gains on the disposition of property that produces such income, or (b) if at least 50% of the fair market value of its assets (determined on the basis of a quarterly average) is attributable to assets that produce, or are held for the production of, passive income (including for these purposes its pro rata share of the gross income and assets of any corporation (and, if certain proposed Treasury Regulations are applied, partnerships) in which it is considered to own at least 25% of the interest, by value). The determination of whether a foreign corporation is a PFIC is made annually. If CSLM is determined to be a PFIC for any taxable year (or portion thereof) that is included in the holding period of a U.S. Holder of CSLM securities and, in the case of Public Shares, the U.S. Holder did not make either (a) a timely qualified electing fund (“ QEF”) election under Section 1295 of the Code for CSLM’s first taxable year as a PFIC in which the U.S. Holder held (or was deemed to hold) Public Shares or (b) a QEF election along with a “purging election,” both of which are discussed further below, such holder generally will be subject to special rules with respect to:

| • |     | any gain recognized by the U.S. Holder on the sale or other disposition of CSLM securities; and |

| • |     | any “excess distribution” made to the U.S. Holder (generally, any distributions to such U.S. Holder                                                                                                                                                    
 during a taxable year of the U.S. Holder that are greater than 125% of the average annual distributions received by such U.S. Holder in respect of the Public Shares during the three preceding taxable years of such U.S. Holder or, if shorter, such 
 U.S. Holder’s holding period for the Public Shares).                                                                                                                                                                                                   |

Under these rules,

| • |     | the U.S. Holder’s gain or excess distribution will be allocated ratably over the U.S. Holder’s 
 holding period for the CSLM securities;