Company: CLM
Filing Date: 2025-02-21
Form Type: N-2
Source: 0001398344-25-003234
Chunk: 118

Company: Cornerstone Strategic Investment Fund, Inc.
Filing Date: 2025-02-21
Form: N-2
Chunk 118
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 tax under an applicable tax treaty, the Non-U.S. Holder will be required to provide an applicable
IRS Form W-8 certifying its entitlement to benefits under the treaty in order to obtain a reduced rate of withholding tax. However, if
the distributions are effectively connected with a U.S. trade or business of the Non-U.S. Holder (or, if an income tax treaty applies,
attributable to a permanent establishment in the United States of the Non-U.S. Holder), then the distributions will be subject to U.S.
federal income tax at the rates applicable to U.S. persons, plus, in certain cases where the Non-U.S. Holder is a corporation, a branch
profits tax at a 30% rate (or lower rate provided in an applicable treaty). If the Non-U.S. Holder is subject to such U.S. income tax
on a distribution, then the Fund is not required to withhold U.S. federal tax if the Non-U.S. Holder complies with applicable certification
and disclosure requirements.

Special certification requirements apply to a
Non-U.S. Holder that is a foreign partnership or a foreign trust, and such entities are urged to consult their own tax advisors.

Section 871(k) of the Code provides certain “look-through”
treatment to Non-U.S. Holders, permitting interest-related dividends and short-term capital gains not to be subject to U.S. withholding
tax.

Special U.S. federal income tax rules will apply
to Non-U.S. Holders that hold shares in the Fund.

Non-U.S. Holders should consult their own tax
advisors to determine the U.S. federal, state, local and other tax consequences that may be relevant to them.

Net Investment Income Tax

A U.S. Holder that is an individual or estate,
or a trust that does not fall into a special class of trusts that is exempt from such tax, will be subject to a 3.8% tax on the lesser
of (1) the U.S. Holder’s “net investment income” for the relevant taxable year and (2) the excess of the U.S. Holder’s
modified adjusted gross income for the taxable year over a certain threshold (which, in the case of individuals, will be between $125,000
and $250,000 depending on the individual’s circumstances). A U.S. Holder’s “net investment income” may generally
include portfolio income (such as interest and dividends), and income and net gains from an activity that is