Company: CGCT
Filing Date: 2025-03-21
Form Type: S-1/A
Source: 0001104659-25-026623
Chunk: 316

Company: Cartesian Growth Corp III
Filing Date: 2025-03-21
Form: S-1/A
Chunk 316
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 case of our Class A ordinary shares, the
U.S. Holder did not make either a timely mark-to-market election or a qualified electing fund (“QEF”) election (as discussed
below) for our first taxable year as a PFIC in which the U.S. Holder held (or was deemed to hold) Class A ordinary shares,
as described below, such U.S. Holder generally will be subject to special rules with respect to (i) any gain recognized
by the U.S. Holder on the sale or other disposition of its Class A ordinary shares or warrants (which may include gain realized
by reason of transfers of Class A ordinary shares or warrants that would otherwise qualify as non-recognition transactions for U.S. federal
income tax purposes) and (ii) any “excess distribution” made to the U.S. Holder (generally, any distributions to
such U.S. Holder during a taxable year of the U.S. Holder that are greater than 125% of the average annual distributions received
by such U.S. Holder in respect of the Class A ordinary shares during the three preceding taxable years of such U.S. Holder
or, if shorter, the portion of such U.S. Holder’s holding period for the Class A ordinary shares that preceded the taxable
year of the distribution) (together the “excess distribution rules”).

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Under these excess distribution rules:

| · | the                                                                                        
 U.S. Holder’s gain or excess distribution will be allocated ratably over the U.S. Holder’s 
 holding period for 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