Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 252

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 10
Chunk 252
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regardless of the location of such person’s core of vital interests. A legal entity is a resident of Mexico if it is incorporated
under the laws of Mexico, or if it maintains the principal administration of its business or the effective location of its management
in Mexico.

A permanent establishment in Mexico of a non-Mexican resident
will be regarded as a resident of Mexico for tax purposes, and any and all income attributable to such permanent establishment will be
required to pay taxes in Mexico in accordance with applicable law.

Dividends

Dividends, either in cash or in any other form (except for
stock dividends), paid with respect to A shares or B shares represented by the CPOs (or in the case of holders who hold CPOs represented
by ADSs), will be subject to a 5% Mexican withholding tax based on the amount of the distributed dividend, multiplied by a factor of 1.5385,
which produces a net Mexican withholding tax of approximately 7.7% applicable to holders of CPOs who are non-residents of Mexico. Under
the Treaty, a U. S. Shareholder who owns less than 10% of our stock and is otherwise eligible for benefits under such treaty will, in no
event, be subject to more than a 10% withholding tax.

Disposition of ADSs or CPOs

The sale or the disposition of ADSs or CPOs by a non-Mexican
holder will not be subject to any Mexican tax, if the transaction is carried out through the Mexican Stock Exchange or other securities
markets approved by the Ministry of Finance and Public Credit (Secretaria de Hacienda y Crédito Público).

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The exemption referred to in the previous paragraph would
not be applicable (i) if the person or group of persons that directly or indirectly hold 10% or more of our shares, in a period of
24 months, sell 10% or more of such shares, through one transaction or through more than one simultaneous or successive transactions,
including transactions conducted through derivatives or in any other analogous or similar manner, and (ii) if a person or group of
persons who control Volaris sell their control through one transaction or more than one simultaneous or successive transactions in a period
of 24 months, including transactions conducted through derivatives or in any other analogous or similar manner. For purposes of the above,
“control” and “group of persons” have the meaning as