Company: CWAN
Filing Date: 2025-02-11
Form Type: S-4
Source: 0001193125-25-023759
Chunk: 167

Company: Clearwater Analytics Holdings, Inc.
Filing Date: 2025-02-11
Form: S-4
Chunk 167
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 such holder may have dividend income up to the amount of cash received by it in the Merger, depending on the current or
accumulated “earnings and profits” of Clearwater or Enfusion, as applicable. Because the possibility of dividend treatment depends primarily upon each holder’s particular circumstances, including the application of certain
constructive ownership rules, all holders of Enfusion Common Stock should consult their tax advisors regarding the application of the foregoing rules to them in their particular circumstances.

U.S. federal income tax consequences to U.S. Holders of holding Clearwater Common Stock

Dividends and other distributions on Clearwater Common Stock

For U.S. federal income tax purposes, distributions of cash by Clearwater to a U.S. Holder with respect to shares of Clearwater Common Stock
received in the Merger will generally be included in such U.S. Holder’s income as dividend income to the extent of Clearwater’s current or accumulated “earnings and profits” as determined under U.S. federal income tax principles.
Distributions of cash in excess of Clearwater’s current and accumulated earnings and profits will be treated as a non-taxable return of capital reducing a U.S. Holder’s adjusted tax basis in such
U.S. Holder’s shares of Clearwater Common Stock and, to the extent the distribution exceeds such U.S. Holder’s adjusted tax basis, as capital gain from the sale or exchange of such shares of Clearwater Common Stock. Dividends received by a
corporate U.S. Holder may be eligible for a dividends received deduction, subject to applicable limitations. Dividends received by an individual U.S. Holder may be

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taxed at the lower applicable long-term capital gains rate if such dividends are treated as “qualified dividend income” for U.S. federal income tax purposes. Gain or loss on sale, taxable exchange or other taxable disposition of Clearwater Common Stock Upon the sale, exchange, certain redemptions or other taxable dispositions of shares of Clearwater Common Stock received in the Merger, a U.S. Holder will generally recognize capital gain or loss equal to the difference between (i) the amount of cash and the fair market value of any other property received upon such taxable disposition of shares of Clearwater Common Stock and (ii) the U.S. Holder’s adjusted tax basis in such shares of Clearwater Common Stock. Such capital gain or loss will be long-term capital gain or loss if the U.S. Holder’s holding period in the shares of Clearwater Common Stock disposed of is more