Company: CTTRF
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001292814-25-001765
Chunk: 247

Company: Controladora Vuela Compania de Aviacion, S.A.B. de C.V.
Filing Date: 2025-04-30
Form: 20-F
Item: Item 10
Chunk 247
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 28, 2021 and ending before the date that a notice or other guidance withdrawing or modifying the temporary relief
is issued (or any later date specified in such notice or other guidance). The rules governing the determination of the foreign tax credit
are complex, and certain limitations and conditions may apply to a U. S. Holder’s ability to claim the foreign tax credit for any
foreign taxes paid or withheld with respect to the ADSs. U. S. Holders should consult their tax advisors regarding the availability
of a foreign tax credit in their particular circumstances and the possibility of claiming a deduction in lieu of the foreign tax credit.

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Passive Foreign Investment Company Considerations

Notwithstanding the foregoing, certain adverse U. S. federal
income tax consequences could apply to a U. S. Holder if we are treated as a PFIC for any taxable year during which such U. S. Holder holds
our ADSs. We would be classified as a PFIC for any taxable year if, after applying certain look-through rules with respect to the
income and assets of our subsidiaries (including taking into account our pro rata portion of the income and assets of each corporation
in which we own, directly or indirectly, at least a 25% interest (by value)), either:

  75% or more of our gross income for such taxable year is “ passive  

  50% or more of the value of our assets (generally determined on the basis of a quarterly average) during    
  such taxable year is attributable to assets that produce or are held for the production of passive income.  
 ──────────────────────────────────────────────────────────────────────────────────────────────────────────────

For this purpose, “passive income” includes, subject
to certain exceptions, dividends, interest, royalties, rents, annuities, gains from commodities and securities transactions, net gains
from the sale or exchange of property producing such passive income, net foreign currency gains and amounts derived by reason of the temporary
investment of funds.

Based on the market price of our ADSs and the composition
of our income, assets and operations, we do not believe we were classified as a PFIC for U. S. federal income tax purposes for the taxable
year ended December 31, 2024. However, this is a factual determination that must be made annually after the close of each taxable year.
This determination will depend on, among other things, the ownership and the composition of the