Company: ATMCW
Filing Date: 2025-11-17
Form Type: DEFM14A
Source: 0001493152-25-023842
Chunk: 212

Company: ALPHATIME ACQUISITION CORP
Filing Date: 2025-11-17
Form: DEFM14A
Chunk 212
---
 tax at the highest rate in effect for individuals or corporations, as applicable, for that taxable year, and an interest charge will be imposed on the resulting tax liability for each such year. Furthermore, to the extent that distributions received by a U.S. Holder in any taxable year on its PubCo Ordinary Shares exceed 125% of the average of the annual distributions on the PubCo Ordinary Shares received during the preceding three taxable years or the U.S. Holder’s holding period, whichever is shorter, the excess distributions will be subject to taxation in the same manner.

In general, a U.S. Holder of ATMC Ordinary Shares may avoid the adverse PFIC tax consequences described above in respect of the PubCo Ordinary Shares if it has made and maintains a timely and valid QEF election to include in income its pro rata share of AlphaTime’s (and its successor PubCo’s) net capital gains (as long-term capital gains) and other earnings and profits (as ordinary income), on a current basis, in each case, whether or not distributed, in the taxable year of the U.S. Holder in which or with which AlphaTime’s (or its successor PubCo’s) taxable year ends. In order to comply with the requirements of a QEF election, a U.S. Holder must receive a PFIC Annual Information Statement from AlphaTime or PubCo, as the case may be. AlphaTime will endeavor to make available to U.S. Holders a PFIC Annual Information Statement, upon request, with respect to its taxable year ended December 31, 2023. It is unclear whether a U.S. Holder of Public Rights is entitled to make a QEF election with respect to the Public Rights. Under proposed Treasury regulations, for purposes of the PFIC rules, the holding period of ATMC Ordinary Shares received with respect to Public Rights (and the holding period of PubCo Ordinary Shares received with respect thereto) could include the holding period for the Public Rights. Therefore, assuming a QEF election is not available with respect to the Public Rights, a U.S. Holder of Public Rights may be subject to the general PFIC rules described in the preceding paragraph with respect to the shares underlying the Public Rights, even if the U.S. Holder made a QEF election with respect to its other ATMC Ordinary Shares, unless a purging election is made. U.S. Holders of Public Rights should consult their tax advisers regarding whether and how the PFIC rules apply to their Public Rights or the underlying ATMC Ordinary Shares.

|