Company: NKLR
Filing Date: 2025-06-26
Form Type: S-4/A
Source: 0001213900-25-058019
Chunk: 226

Company: Terra Innovatum Global N.V.
Filing Date: 2025-06-26
Form: S-4/A
Chunk 226
---
 for the taxable year that is the first year in the U.S. holder’s holding period of GSR III Class A Ordinary Shares during which GSR III was classified as a PFIC or, if in a later taxable year, the U.S. holder made a QEF election together with a deemed sale election, or (ii) a timely and a valid mark -to -marketelection for the first taxable year of the U.S. holder in which the U.S. holder holds (or is deemed to hold) GSR III Class A Ordinary Shares and for which GSR III is classified as a PFIC. If such a QEF or mark -to -marketelection has been made, the electing U.S. holder generally will not be subject to the excess distribution regime discussed above in “— Passive Foreign Investment Company Rules — In general” and the tax consequences should be as set forth above under the caption heading “— Redemption of GSR III Class A Ordinary Shares,” otherwise the tax consequences should be as set forth above under the heading “— Passive Foreign Investment Company Rules — In general.” The rules dealing with PFICs and with the QEF, deemed sale, and mark -to -marketelections are very complex and are affected by various factors. Accordingly, U.S. holders of GSR III Class A Ordinary Shares should consult their own tax advisors concerning the application of the PFIC rules to their GSR III Class A Ordinary under their particular circumstances. Ownership of PubCo Ordinary Shares Distributions on PubCo Ordinary Shares This discussion is subject to the discussion under “— Passive Foreign Investment Company Rules” below. Distributions on PubCo Ordinary Shares generally will be taxable as dividends for U.S. federal income tax purposes to the extent paid from PubCo’s current or accumulated earnings and profits, as determined under U.S. federal income tax principles. Distributions in excess of PubCo’s current and accumulated earnings and profits will constitute a return of capital that will be applied against and reduce (but not below zero) the U.S. holder’s adjusted tax basis in its PubCo Ordinary Shares. Any remaining excess will be treated as gain realized on the sale or other disposition of the PubCo Ordinary Shares and will be treated as described below under the heading “ Sale, Exchange or Other Taxable Disposition of PubCo Ordinary Shares.” The amount of any such distribution will include any amounts withheld by PubCo (or another applicable withholding agent), which, as described below under the heading “ Material Dutch Tax Considerations — PubCo Ordinary Shares