Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 323

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 19
Chunk 323
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 can be utilized, except, in respect of deductible temporary differences associated with
investments in subsidiaries, deferred tax assets are recognized only to the extent that it is probable that the temporary differences
will reverse in the foreseeable future and taxable profits will be available against which the temporary differences can be utilized.

The Company considers the following criteria in assessing
the probability that taxable profit will be available against which the unused tax losses or unused tax credits can be utilized: (a) whether
the entity has sufficient taxable temporary differences relating to the same taxation authority and the same taxable entity, which will
result in taxable amounts against which the unused tax losses or unused tax credits can be utilized before they expire; (b) whether it
is probable that the Company will have taxable profits before the unused tax losses or unused tax credits expire; (c) whether the unused
tax losses result from identifiable causes that are unlikely to recur; and (d) whether tax planning opportunities are available to the
Company that will create taxable profit in the period in which the unused tax losses or unused tax credits can be utilized.

The carrying amount of deferred income tax assets is reviewed
at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow
all or part of the deferred income tax asset to be utilized. Unrecognized deferred income tax assets are reassessed at each reporting
date and are recognized to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be
recovered.

Deferred income tax assets and liabilities are measured at
the tax rates that are expected to apply in the year when the asset is realized or the liability is settled, based on tax rates (and tax
laws) that have been enacted or substantively enacted at the reporting date.

Deferred income tax relating to items recognized outside profit
or loss is recognized outside profit or loss. Deferred tax items are recognized in correlation to the underlying transaction in OCI.

Deferred income tax assets and deferred income tax liabilities
are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred income
taxes relate to the same taxable entity and the same taxation authority.

Income taxes are computed based on tax laws approved in Mexico,
Costa Rica, Guatemala and El Salvador at the date of the consolidated statement of financial position.

The IFRIC Interpretation 23 “ Uncertainty over Income
Tax Treatment” addresses the accounting for income taxes when tax treatments involve uncertainty that affects the application of
IAS