Company: CGCT
Filing Date: 2025-04-14
Form Type: S-1/A
Source: 0001104659-25-034635
Chunk: 318

Company: Cartesian Growth Corp III
Filing Date: 2025-04-14
Form: S-1/A
Chunk 318
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holding period of such warrants, any gain recognized generally will be treated as an excess distribution, taxed as described above. If
a U.S. Holder that exercises such warrants properly makes and maintains a QEF election with respect to the newly acquired Class A
ordinary shares (or has previously made a QEF election with respect to our Class A ordinary shares), the QEF election will apply
to the newly acquired Class A ordinary shares. Notwithstanding such QEF election, the excess distribution rules discussed above,
adjusted to take into account the current income inclusions resulting from the QEF election, will continue to apply with respect to such
newly acquired Class A ordinary shares (which, while not entirely clear, generally will be deemed to have a holding period for purposes
of the PFIC rules that includes the period the U.S. Holder held the warrants), unless the U.S. Holder makes a purging
election under the PFIC rules. U.S. Holders are urged to consult their tax advisors as to the application of the rules governing
purging elections to their particular circumstances.

The QEF election is made on a shareholder-by-shareholder
basis and, once made, can be revoked only with the consent of the IRS. A U.S. Holder generally makes a QEF election by attaching
a completed IRS Form 8621 (Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund),
including the information provided in a PFIC annual information statement, to a timely filed United States federal income tax return
for the tax year to which the election relates. Retroactive QEF elections generally may be made only by filing a protective statement
with such return and if certain other conditions are met or with the consent of the IRS. U.S. Holders should consult their
tax advisors regarding the availability and tax consequences of a retroactive QEF election under their particular circumstances.

In order to comply with the requirements of a
QEF election, a U.S. Holder must receive a PFIC annual information statement from us. If we determine we are a PFIC for any taxable
year, upon written request, we will endeavor to provide to a U.S. Holder such information as the IRS may require, including a PFIC
annual information statement, in order to enable the U.S. Holder to make and maintain a QEF election, but there is no assurance
that we will timely provide such required information. There is also no assurance that we will have timely knowledge of our status as
a