Company: CGCT
Filing Date: 2025-03-21
Form Type: S-1/A
Source: 0001104659-25-026623
Chunk: 319

Company: Cartesian Growth Corp III
Filing Date: 2025-03-21
Form: S-1/A
Chunk 319
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 to be provided.

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If a U.S. Holder has made a QEF election
with respect to our Class A ordinary shares, and the excess distribution rules discussed above do not apply to such shares
(because of a timely QEF election for our first taxable year as a PFIC in which the U.S. Holder holds (or is deemed to hold) such
shares or a purge of the PFIC taint pursuant to a purging election, as described above), any gain recognized on the sale of our Class A
ordinary shares generally will be taxable as capital gain and no additional interest charge will be imposed under the PFIC rules. As
discussed above, if we are a PFIC for any taxable year, a U.S. Holder of our Class A ordinary shares that has made a QEF election
will be currently taxed on its pro rata share of our earnings and profits, whether or not distributed for such year. A subsequent distribution
of such earnings and profits that were previously included in income generally should not be taxable when distributed to such U.S. Holder.
The tax basis of a U.S. Holder’s shares in a QEF will be increased by amounts that are included in income, and decreased by
amounts distributed but not taxed as dividends, under the above rules. In addition, if we are not a PFIC for any taxable year, such U.S. Holder
will not be subject to the QEF inclusion regime with respect to our Class A ordinary shares for such a taxable year.

Alternatively, if a U.S. Holder, at the
close of its taxable year, owns shares in a PFIC that are treated as marketable stock, the U.S. Holder may make a mark-to-market
election with respect to such shares for such taxable year. If the U.S. Holder makes a valid mark-to-market election for the first
taxable year of the U.S. Holder in which the U.S. Holder holds (or is deemed to hold) Class A ordinary shares in us and
for which we are determined to be a PFIC, such U.S. Holder generally will not be subject to the excess distribution rules described
above with respect to its Class A ordinary shares. Instead, in general, the U.S. Holder will include as ordinary income in
each taxable year the excess, if any, of the fair market value of its Class A ordinary shares at the end of its taxable year over
its adjusted basis in its Class A ordinary