Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 248

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 10
Chunk 248
---
 income and assets, as well as the value
of the assets (which may fluctuate with our market capitalization), of the Company and its subsidiaries from time to time. Therefore,
there can be no assurance that we will not be classified as a PFIC for the current taxable year or for any future taxable year.

If we were classified as a PFIC for any taxable year during
which a U. S. Holder held our ADSs, the U. S. Holder would be subject to special tax rules with respect to any “excess
distributions” that the U. S. Holder receives in respect of our ADSs and any gain realized by the U. S. Holder from a sale or
other disposition (including a pledge) of the ADSs, unless the U. S. Holder makes one of the elections described below. Under these
special tax rules:

  the excess distribution or gain will be allocated ratably over the U. S. Holder’s holding period for our ADSs;  

  the amount allocated to the current taxable year, and any taxable year in the U. S. Holder’s holding period prior to the first  

  the amount allocated to each other taxable year will be subject to the highest tax rate in effect for that year and the interest charge  

In addition, dividend distributions made to the U. S. Holder
will not qualify for the preferential rates of U. S. federal income taxation applicable to long-term capital gains discussed above under
“ - Distributions” and the U. S. Holder may be required to file IRS Form 8621 with the U. S. Holder’s federal income
tax return for that year. You should consult your tax advisor concerning your annual filing requirements in the event we are classified
as a PFIC for any taxable year during which you hold our ADSs.

If we are a PFIC for any taxable year during which a U. S.
Holder holds our ADSs, we will continue to be treated as a PFIC with respect to the U. S. Holder for all succeeding taxable years during
which the U. S. Holder holds the ADSs. If we cease to be a PFIC, the U. S. Holder may be able to avoid some of the adverse tax consequences
of the PFIC regime by making a deemed sale election with respect to our ADSs. If such election is made, the U. S. Holder will be deemed
to have sold our ADSs that the U. S. Holder holds at