Company: CGCT
Filing Date: 2025-04-14
Form Type: S-1/A
Source: 0001104659-25-034635
Chunk: 145

Company: Cartesian Growth Corp III
Filing Date: 2025-04-14
Form: S-1/A
Chunk 145
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 A ordinary shares or warrants, the U.S. Holder
may be subject to adverse U.S. federal income tax consequences and may be subject to additional reporting requirements. Our PFIC
status for our current and subsequent taxable years may depend on whether we qualify for the PFIC start-up exception (see the section
of this prospectus captioned “Taxation — United States Federal Income Tax Considerations — U.S. Holders — Passive Foreign Investment Company Rules”). Depending on the particular circumstances the application of the start-up
exception may be subject to uncertainty, and there cannot be any assurance that we will qualify for the start-up exception. Our actual
PFIC status for any taxable year, however, will not be determinable until after the end of such taxable year (and, in the case of the
start-up exception, potentially not until after the two taxable years following our current taxable year). Accordingly, there can
be no assurances with respect to our status as a PFIC for our current taxable year or any subsequent taxable year. Moreover, 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 “qualified
electing fund” election, but there can be no assurance that we will timely provide such required information, and such election
would be unavailable with respect to our warrants in all cases. We urge U.S. investors to consult their own tax advisors regarding
the possible application of the PFIC rules. For a more detailed explanation of the tax consequences of PFIC classification to U.S. Holders,
see the section of this prospectus captioned “Taxation — United States Federal Income Tax Considerations — U.S. Holders — Passive Foreign Investment Company Rules.”

If our initial business combination involves a company organized under the laws of the United States (or any subdivision thereof), a U.S. federal excise tax could be imposed on us in connection with any redemptions of our Class A ordinary shares after or in connection with such initial business combination.

The Inflation Reduction Act of 2022
provides for, among other things, a new 1% U.S. federal excise tax on certain repurchases (including redemptions) of stock by publicly
traded U.S. corporations after December 31, 2022 (the “stock buyback tax”),