Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 245

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 10
Chunk 245
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 determined under U. S. federal income tax principles. Because we do not expect to maintain
calculations of our earnings and profits in accordance with U. S. federal income tax principles, it is expected that distributions paid
to U. S. holders generally will be reported as dividends. Accordingly, U. S. Holders should expect that all such distributions made with
respect to our ADSs will be treated as dividends. Dividends on our ADSs will not be eligible for the dividends-received deduction allowed
under the Code to U. S. Holders that are corporations.

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With respect to non-corporate U. S. Holders, dividends on our
ADSs may qualify as “qualified dividend income” which is eligible for reduced rates of U. S. federal income taxation provided
that:

  we are eligible for the benefits of the Treaty, or with respect to the dividend paid on our ADSs which  

  we are not a PFIC (as discussed below) for either the taxable year in which the dividend was paid or the  

  the U. S. Holder satisfies certain holding period requirements, and  

  the U. S. Holder is not under an obligation to make related payments with respect to positions in substantially  

Currently our ADSs are listed on NYSE, which is an established
securities market in the United States, and should be considered readily tradable on NYSE. However, there can be no assurance that our
ADSs will be considered readily tradable on an established securities market in the United States in future years. U. S. Holders should
consult their tax advisors regarding the availability of such reduced rate for dividends paid with respect to our ADSs.

The amount of any distribution on our ADSs paid in pesos will
be equal to the U. S. dollar value of pesos on the date such distribution is includible in income by the recipient, regardless of whether
the payment is in fact converted into U. S. dollars at that time. If the distribution is converted into U. S. dollars on the date of receipt,
a U. S. Holder should not be required to recognize foreign currency gain or loss in respect of the distribution. A U. S. Holder may have
foreign currency gain or loss if the distribution is converted into U. S. dollars after the date of receipt. In general, foreign currency
gain or loss will be treated as U. S.-source ordinary income or loss. The amount