Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 137

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 4A
Chunk 137
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 Table of Contents  

Deferred
Taxes.

Deferred taxes are recorded based on differences between the
financial statement basis and tax basis of assets and liabilities and available tax loss and credit carry-forwards. In assessing our ability
to realize deferred tax assets, our management considers whether it is more likely than not that some or all of the deferred tax assets
will be realized. In evaluating our ability to utilize our deferred tax assets, we consider all available evidence, both positive and
negative, in determining future taxable income on a jurisdiction-by-jurisdiction basis. As of December 31, 2022, 2023, and 2024, we had
tax loss carry-forwards amounting to U. S. $127.9 million, U. S. $131.2 million, and U. S. $0.8 million, respectively. These losses relate
to our and our subsidiaries’ operations on a stand-alone basis, which in conformity with current Mexican Income Tax Law may be carried
forward against taxable income generated in the succeeding years in each country and may not be used to offset taxable income elsewhere
in our consolidated group. During the year ended December 31, 2022, 2023, and 2024, we used tax-loss carry-forwards of U. S. $4.0 million,
U. S. $15.5 million, and U. S. $107.9 million, respectively.

Central America (Guatemala, Costa Rica and El Salvador)

According to Guatemala corporate income tax law, under the
regime on profits from business activities net operating losses cannot offset taxable income in prior or future years. For the years ended
December 31, 2022, 2023, and 2024, we generated tax (loss) profit of U. S. $(10) thousand, U. S. $623 thousand, and U. S. $966 thousand,
respectively.

According to Costa Rica corporate income tax law, the tax
is based on the net income earned from traffic whose origin or final destination is Costa Rica and net operating losses can offset taxable
income in a term of three years. For the years ended December 31, 2022, 2023 and 2024 we generated a net operating gain (loss) of U. S.
$3.9 million, U. S. $(9.5) million and U. S. $0.6 million, respectively. Regarding operating loss no deferred tax asset has been