Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 246

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 10
Chunk 246
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 of any distribution of property other than cash will be
the fair market value of such property on the date of distribution.

Sale or Other Taxable Disposition of our ADSs

Subject to the PFIC rules discussed below, upon the sale
or other taxable disposition of our ADSs, a U. S. Holder generally will recognize capital gain or loss in an amount equal to the difference
between the amount realized (in U. S. dollars) on such taxable disposition and the U. S. Holder’s adjusted tax basis (in U. S.
dollars) in such ADSs. Any such gain or loss will be treated as long-term capital gain or loss if the U. S. Holder’s holding period
for such ADSs exceeds one year. Certain non-corporate U. S. Holders (including individuals) are currently subject to U. S. federal
income tax on long-term capital gain at preferential rates. The deductibility of capital losses is subject to significant limitations.

Foreign Taxes

Certain Mexican taxes, if any, withheld or paid on dividends
on, or upon the sale or other taxable disposition of, our ADSs may, subject to limitations and conditions, be treated as foreign income
tax eligible for credit against a U. S. Holder’s U. S. federal income tax liability under the U. S. foreign tax credit rules or, at
the U. S. Holder’s election, eligible for deduction in computing the U. S. Holder’s U. S. federal taxable income. If a refund
of any such Mexican tax is available to a U. S. Holder under the laws of Mexico imposing such tax or under the Treaty, the amount of such
tax that is refundable will not be eligible for the credit or deduction against the U. S. Holder’s U. S. federal income tax liability.
Dividends paid on ADSs generally will constitute foreign source income and generally will be considered “passive category”
income in computing the foreign tax credit allowable to U. S. Holders under U. S. federal income tax laws. Certain U. S. Treasury regulations
may further restrict the availability of any foreign tax credit (or deduction in lieu thereof). However, pursuant to guidance from the
IRS which indicates that the U. S. Department of the Treasury and the IRS are considering proposing amendments to such Treasury regulations,
taxpayers may, subject to certain conditions defer the application of many aspects of such Treasury regulations for taxable years beginning
on or after December