Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 244

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 10
Chunk 244
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 the obligations in the CPO trust agreement, ADS deposit agreement
and any related agreements have been and will be complied with in accordance with their terms. For U. S. federal income tax purposes, U. S.
Holders will be treated as the beneficial owners of the CPOs represented by our ADSs and each CPO should represent a beneficial interest
in our Series A Shares represented by the CPOs. The U. S. Treasury Department has expressed concern that intermediaries in the chain of
ownership between the holder of an ADS and the issuer of the security underlying the ADS may be taking actions that are inconsistent with
the beneficial ownership of the underlying security. Accordingly, the creditability of certain Mexican taxes paid, if any, and the availability
of the reduced tax rate for dividends received by certain non-corporate U. S. Holders, including individual U. S. Holders (as discussed
below under “ Distributions”), could be affected by actions taken by intermediaries in the chain of ownership between U. S.
Holders and us if as a result of such actions U. S. Holders are not properly treated as beneficial owners of the CPOs and our Series A
Shares represented by the CPOs.

THIS DISCUSSION IS FOR INFORMATIONAL PURPOSES ONLY AND
IS NOT TAX ADVICE. INVESTORS SHOULD CONSULT THEIR TAX ADVISORS WITH RESPECT TO THE APPLICATION OF THE U. S. FEDERAL INCOME TAX LAWS TO
THEIR PARTICULAR SITUATIONS AS WELL AS ANY TAX CONSEQUENCES OF THE OWNERSHIP AND DISPOSITION OF OUR ADSs UNDER THE U. S. FEDERAL ESTATE
OR GIFT TAX LAWS OR UNDER THE LAWS OF ANY STATE, LOCAL OR NON-U. S. TAXING JURISDICTION OR UNDER THE TREATY

Distributions

Subject to the PFIC rules discussed below under “ - Passive
Foreign Investment Company Considerations,” the gross amount of distributions made with respect to our ADSs (including the amount
of any Mexican taxes withheld therefrom, if any, and excluding certain pro rata distributions of our underlying Series A Shares or other
similar equity interests) will generally be includable in a U. S. Holder’s gross income (in accordance with the U. S. Holder’s
method of accounting for U. S. federal income tax purposes) as dividend income to the extent that such distributions are paid out of our
current or accumulated earnings and profits as