Company: CSLMF
Filing Date: 2025-07-03
Form Type: DEFM14A
Source: 0001193125-25-155514
Chunk: 297

Company: CSLM ACQUISITION CORP.
Filing Date: 2025-07-03
Form: DEFM14A
Chunk 297
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| • |     | 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 period in the U.S. Holder’s holding period before the first day of CSLM’s first taxable year in which it qualified as a PFIC, will be taxed as ordinary income; |

| • |     | the amount allocated to other taxable years (or portions 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; and |

| • |     | the interest charge generally applicable to underpayments of tax will be imposed in respect of the tax 
 attributable to each such other taxable year of the U.S. Holder.                                       |

In general, if CSLM is determined to be a PFIC, a U.S. Holder may avoid the PFIC tax consequences described above with respect to its Public Shares by making a timely QEF election (or a QEF election along with a purging election), as described below. Pursuant to the QEF election, a U.S. Holder will be required to include in income its pro rata share of CSLM’s net capital gain (as long-term capital gain) and other earnings and profits (as ordinary income), on a current basis, whether or not distributed, in the taxable year of the U.S. Holder in which or with which CSLM’s taxable year ends. Impact of PFIC Rules on Certain U.S. Holders The impact of the PFIC rules on a U.S. Holder of CSLM securities will depend on whether the U.S. Holder has made a timely and effective election to treat CSLM as a QEF, for CSLM’s first taxable year as a PFIC in which the U.S. Holder held (or was deemed to hold) Public Shares, or if the U.S. Holder made an effective QEF election along with a “purging election,” as discussed below. A U.S. Holder’s ability to make an effective QEF election with respect “ CSLM is contingent upon, among other things, the provision by CSLM of certain information that would enable the U.S. Holder to make and maintain a QEF election. CSLM will endeavor to provide to a U.S. Holder upon request such information as the IRS may require, including a PFIC annual information statement, in order to enable the U.S. Holder to make