Company: RENEF
Filing Date: 2025-10-20
Form Type: DEF 14A
Source: 0001104659-25-100857
Chunk: 52

Company: Cartesian Growth Corp II
Filing Date: 2025-10-20
Form: DEF 14A
Chunk 52
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 in
effect, long-term capital gains recognized by non-corporate U.S. Holders are generally subject to U.S. federal income tax at a reduced
rate of tax. Capital gain or loss will constitute long-term capital gain or loss if the U.S. Holder’s holding period for the ordinary
shares exceeds one year. However, it is unclear whether the redemption rights with respect to the Class A Ordinary Shares described in
this proxy statement may prevent the holding period of the Class A Ordinary Shares from commencing prior to the termination of such rights.
The deductibility of capital losses is subject to various limitations. U.S. Holders who hold different blocks of Class A Ordinary Shares
(Class A Ordinary Shares purchased or acquired on different dates or at different prices) should consult their tax advisor to determine
how the above rules apply to them.

PFIC Considerations

Generally

A foreign corporation (i.e.,
non-U.S.) will be a PFIC for U.S. federal income tax purposes if either (i) at least 75% of its gross income in a taxable year is passive
income, or (ii) at least 50% of its assets in a taxable year of the foreign corporation, ordinarily determined based on fair market value
and averaged quarterly over the year are held for the production of, or produce, passive income. Passive income generally includes dividends,
interest, rents and royalties (other than certain rents or royalties derived from the active conduct of a trade or business) and gains
from the disposition of passive assets. Generally, cash is considered to be held for the production of passive income and thus is considered
a passive asset. The determination of whether a foreign corporation is a PFIC is based upon the composition of such corporation’s
income and assets (including, among others, its proportionate share of the income and assets of any other corporation in which it owns,
directly or indirectly, 25% (by value) of the stock), and the nature of such corporation’s activities.

A separate determination
must be made after the close of each taxable year as to whether a foreign corporation was a PFIC for that year. Once a foreign corporation
qualifies as a PFIC it is, with respect to a shareholder during the time it qualifies as a PFIC, and subject to certain exceptions, always
treated as a PFIC with respect to such shareholder, regardless of whether it satisfied either of the qualification tests in subsequent
years.

Pursuant
to the start-up exception, a foreign corporation