Page 174 - A&T BANK ANNUAL REPORT 2012

GENERAL INFORMATION
CORPORATE MANAGEMENT
FINANCIAL INFORMATION
ARAP TÜRK BANKASI ANONİM ŞİRKETİ
CONSOLIDATED FINANCIAL REPORT
AS OF 31 DECEMBER 2012
(Currency: Thousands of Turkish Lira (“TL”) unless otherwise stated)
Convenience Translation of Consolidated Financial
Report Originally Issued in Turkish
See Note on I. in Section Three
XVII. Information on tax applications
Corporate tax
The corporate tax rate is 20%. Corporate tax rate is calculated on the total income of the Group after adjusting for certain
disallowable expenses, exempt income and other allowances. No further tax is payable unless the profit is distributed.
Dividends paid to the resident institutions and the institutions working through local offices or representatives are not subject
to withholding tax. The withholding tax rate on the dividend payments other than the ones paid to the non-resident institutions
generating income in Turkey through their operations or permanent representatives and the resident institutions is 15%.
In applying the withholding tax rates on dividend payments to the non-resident institutions and the individuals, the withholding
tax rates covered in the related Double Tax Treaty Agreements are taken into account. Appropriation of the retained earnings to
capital is not considered as profit distribution and therefore is not subject to withholding tax.
The prepaid taxes are calculated and paid at the rates valid for the earnings of the related years. The payments can be deducted
from the annual corporate tax calculated for the whole year earnings.
Tax losses can be carried forward for a maximum period of five years following the year in which the losses were incurred. Tax
losses cannot be carried back.
In Turkey, there is no procedure for a final and definite agreement on tax assessments. Companies file their tax returns with
their tax offices by the end of 25th of the fourth month following the close of the accounting period to which they relate. Tax
declarations and related accounting entries can be investigated by tax authorities for five years from the beginning of the
year that follows the date of filing during which time the tax authorities have the right to audit tax returns, and the related
accounting records on which they are based, and may issue re-assessments based on their findings.
Investment incentive
Investment incentive certificates which are obtained prior to April 24, 2003, can deduct 19.8% investment allowance tax
withholding. After this date, encouraging, undocumented activities directly related to the investment expenses of companies
can deduct 40%. There is no withholding tax for The investments without investment incentive certificates.
As per “Law regarding amendments to the Income Tax Law and Some Other Certain Laws and Decree Laws” accepted
on 23 July 2010 at the Grand National Assembly of Turkey, the expression of “can be deducted from the earnings again in
the context of this legislation (including the legislation regarding the tax rate) valid at this date” has been amended as “can
be deducted from the earnings again in the context of this legislation (including the legislation regarding the tax rate as
explained in the second clause of the temporary article no 61 of the Law) valid at this date” and the following expression of “
Investment incentive amount used in determination of the tax base shall not exceed 25% of the associated taxable income. Tax
is computed on the remaining income per the enacted tax rate” has been added. This Law has been published in the Official
Gazette on 1 August 2010.
The clause “The amount which to be deducted as investment incentive to estimate tax base can not exceed 25% of related
income” which has been added to first clause of the temporary 69th article of Law No: 193 with the 5 th article of Law No: 6009
on Amendments to Income Tax Law and Some Other Laws and Decree Laws has been abrogated with the 9 February 2012
dated decisions no: E.2010/93 and K.2012/20. Accordingly, the Group’s subsidiary operating in finance lease sector have taken
these effects into account while arranging corporate tax declaration for the year 2011.