Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 242

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 10
Chunk 242
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 exchange rate policy. The Mexican federal government has announced that it does not intend to change its floating
exchange rate policy, but there is no guarantee that the Mexican federal government will not change this policy. See Item 3: “ Key
Information - Exchange Rates.”

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  Table of Contents  

  Taxation  

Material U. S. Federal Income Tax Consequences

The following is a discussion of the material U. S. federal
income tax consequences to U. S. Holders (as defined below) of the ownership and disposition of our ADSs. This discussion applies only
to U. S. Holders that hold our ADSs as “capital assets” (within the meaning of Section 1221 of the Code and that have
the U. S. dollar as their functional currency. This discussion is based on the Code, the U. S. Treasury regulations promulgated thereunder,
administrative rulings of the Internal Revenue Service (the “ IRS”), and judicial decisions, each as in effect as of the date
hereof. All of the foregoing authorities are subject to change or differing interpretations, possibly with retroactive effect, and any
such change or differing interpretation could affect the tax consequences described below. Except as expressly described herein, this
discussion does not address the U. S. federal income tax consequences that may apply to U. S. Holders under the “ Convention Between
the Government of the United States of America and the Government of the United Mexican States for the Avoidance of Double Taxation and
the Prevention of Fiscal Evasion with Respect to Taxes on Income,” or the Treaty. This discussion does not purport to be a complete
analysis or listing of all potential U. S. federal income tax considerations that may be relevant to U. S. Holders with respect to their
ownership and disposition of our ADSs. This summary does not address any consequences under any U. S. federal tax laws other than those
pertaining to the income tax (e. g., estate or gift taxes), any withholding required pursuant to the Foreign Account Tax Compliance Act
of 2010 (including the U. S. Treasury regulations promulgated thereunder and intergovernmental agreements entered into in connection therewith)
or any state, local or non-U. S. tax consequences.

This discussion also does not address all U. S. federal income
tax consequences relevant to a U. S. Holder’s particular circumstances, including the impact of the Medicare contribution tax on
net investment income