Company: CGCT
Filing Date: 2025-03-21
Form Type: S-1/A
Source: 0001104659-25-026623
Chunk: 317

Company: Cartesian Growth Corp III
Filing Date: 2025-03-21
Form: S-1/A
Chunk 317
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.S. Holder with respect to the tax attributable to each such        
 other taxable year of the U.S. Holder.                                                      |

In general, if we are determined to be a PFIC,
a U.S. Holder may be able to avoid the excess distribution rules described above in respect to our Class A ordinary shares
(but, under current law, not the warrants) by making a timely and valid QEF election (if eligible to do so) to include in income its
pro rata share of our net capital gains (as long-term capital gain) and other earnings and profits (as ordinary income), on a current
basis, in each case whether or not distributed, in the taxable year of the U.S. Holder in which or with which our taxable year ends.
A U.S. Holder generally may make a separate election to defer the payment of taxes on undistributed income inclusions under the
QEF rules, but if deferred, any such taxes will be subject to an interest charge.

If a U.S. Holder makes a QEF election with
respect to its Class A ordinary shares in a year after our first taxable year as a PFIC in which the U.S. Holder held (or was
deemed to hold) Class A ordinary shares, then 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
U.S. Holder’s Class A ordinary shares, unless the U.S. Holder makes a purging election under the PFIC rules. Under
one type of purging election, the U.S. Holder will be deemed to have sold such Class A ordinary shares at their fair market
value and any gain recognized on such deemed sale will be treated as an excess distribution, as described above. As a result of such
purging election, the U.S. Holder will have additional basis (to the extent of any gain recognized on the deemed sale) and, solely
for purposes of the PFIC rules, a new holding period in the Class A ordinary shares.

Under current law, a U.S. Holder may not
make a QEF election with respect to its warrants to acquire our Class A ordinary shares. As a result, if a U.S. Holder sells
or otherwise disposes of such warrants (other than upon exercise of such warrants) and we were a PFIC at any time during the U.S. Holder’s
holding period of such warrants, any gain recognized