Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 253

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 10
Chunk 253
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cribed to them in the LMV. Gains received by a non-resident
holder arising out of the sale or other transfers of ADSs or CPOs made in any of the circumstances described in (i) and (ii) above,
are deemed as income arising from Mexican source subject to Mexican income tax.

Gain on sales or other dispositions of ADSs or CPOs made in
circumstances other than those described in the first paragraph of this section, generally would be subject to Mexican tax at a rate of
25% based on the aggregate proceeds received from the transaction or, subject to certain requirements applicable to the seller (including
the appointment of a representative in Mexico for tax purposes to pay the applicable taxes), on any gain arising from a sale or other
disposition as described in the next paragraph. If income of a non-resident holder is subject to a preferential tax regime (as defined
by the Mexican Income Tax Law), the applicable rate may be up to 40% on the gross income obtained.

A non-resident holder may elect to pay taxes on the gains
realized from the sale of our shares on a net basis (sales price less tax cost basis) at a rate of 30%, provided that the income of the
non-resident holder is not subject to a preferential tax regime (as such terms are defined by the Mexican Income Tax Law), the non-resident
holder appoints a legal representative in Mexico for purposes of the disposition of the shares and the representative files a tax notice
claiming the election and a tax return coupled with a report issued by a public accountant.

Pursuant to the Treaty, gains realized by a holder of ADSs
or CPOs that is eligible to claim benefits thereunder may be exempt from Mexican income tax on gains realized on a sale or other disposition
of shares, if such holder owned, directly or indirectly, less than 25% of our outstanding capital stock during the 12-month period
preceding such disposition provided certain requirements are met. These requirements include the obligation to (i) prove tax treaty
residence, (ii) appoint a legal representative in Mexico for taxation purposes, and (iii) present tax reports prepared by authorized
certified public accountants.

Value Added Tax

According to the provisions of the Mexican Value Added Tax
Law ( Ley del Impuesto al Valor Agregado), the disposition of the ADSs or CPOs made by non-resident holders would be exempt from
the Value Added