Company: CGCT
Filing Date: 2025-03-05
Form Type: S-1/A
Source: 0001104659-25-020969
Chunk: 310

Company: Cartesian Growth Corp III
Filing Date: 2025-03-05
Form: S-1/A
Chunk 310
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 the Class A ordinary shares or warrants;                                |

| · | the                                                                                             
 amount allocated to the U.S. Holder’s taxable year in which the U.S. Holder                     
 recognized the gain or received the excess distribution, or to the portion of the U.S. Holder’s 
 holding period before the first day of our first taxable year in which we are a PFIC,           
 will be taxed as ordinary income;                                                               |

| · | the                                                                                         
 amount allocated to each other taxable year (or portion thereof) of the U.S. Holder         
 and included in its holding period will be taxed at the highest tax rate in effect for that 
 year and applicable to the U.S. Holder without regard to the U.S. Holder’s                  
 other items of income and loss for that year; and                                           |

| · | an                                                                                          
 additional amount equal to the interest charge generally applicable to underpayments of tax 
 will be imposed on the U.S. Holder with respect to the tax attributable to each such        
 other taxable year of the U.S. Holder.                                                      |

In general, if we are determined to be a PFIC,
a U.S. Holder may be able to avoid the excess distribution rules described above in respect to our Class A ordinary shares
(but, under current law, not the warrants) by making a timely and valid QEF election (if eligible to do so) to include in income its
pro rata share of our net capital gains (as long-term capital gain) 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 our taxable year ends.
A U.S. Holder generally may make a separate election to defer the payment of taxes on undistributed income inclusions under the
QEF rules, but if deferred, any such taxes will be subject to an interest charge.

If a U.S. Holder makes a QEF election with
respect to its Class A ordinary shares in a year after our first taxable year as a PFIC in which the U.S. Holder held (or was
deemed to hold) Class A ordinary shares, then notwithstanding such QEF election, the excess distribution rules discussed above,
adjusted to take into account the current income inclusions resulting from the QEF election, will continue to apply with respect to such
U.S. Holder’s Class A ordinary shares, unless the U.S. Holder makes a purging election under the PFIC rules. Under