Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 249

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 10
Chunk 249
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 their fair market value on the last day of the last taxable year in which we qualified
as a PFIC, and any gain from such deemed sale would be subject to the consequences described above. After
the deemed sale election, the U. S. Holder’s ADSs with respect to which the deemed sale election was made will not be treated as
ADSs in a PFIC unless we subsequently become a PFIC.

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If the Company is a PFIC, certain elections may be available
that would result in an alternative treatment. In lieu of being subject to the tax and interest charge rules described above, a U. S. Holder
may make an election to include gain on the stock of a PFIC as ordinary income under a “mark-to-market” method, provided that
such stock is “marketable.” The ADSs generally would be considered marketable for purposes of this election if the ADSs are
traded in more than de minimis quantities on at least 15 days during each calendar quarter on a qualified exchange or other market, as
defined in the applicable U. S. Treasury regulations. NYSE, on which our ADSs are listed, is a qualified exchange for this purpose. U. S.
Holders should consult their tax advisors regarding the availability and consequences of a market-to-market election with respect to the
ADSs.

Alternatively, a U. S. Holder may avoid the adverse tax and
interest-charge regime described above by making an election to treat us as a “qualified electing fund”. However, we do not
intend to prepare or provide the information that would enable U. S. Holders to make a qualified electing fund election.

The U. S. federal income tax rules relating to PFICs are complex.
Prospective U. S. investors are urged to consult their tax advisors with respect to the application of the PFIC rules to their investment
in the ADSs.

Information Reporting and Backup Withholding

Dividend payments with respect to our ADSs and proceeds from
the sale, exchange, redemption or other taxable disposition of our ADSs may be subject to information reporting to the IRS and possible
U. S. backup withholding. Backup withholding will not apply, however, to a U. S. Holder who furnishes a correct taxpayer identification
number and makes any other required certification or otherwise properly establishes an exemption from backup withholding. U. S. Holders
who are required to establish their exempt status may be required