Page 84 - A&T BANK ANNUAL REPORT 2012

GENERAL INFORMATION
CORPORATE MANAGEMENT
FINANCIAL INFORMATION
ARAP TÜRK BANKASI ANONİM ŞİRKETİ
UNCONSOLIDATED 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
The Bank reserved for employee severance indemnities in the accompanying unconsolidated financial statements using
actuarial method in compliance with the TAS 19 – Employee Benefits.
As at 31 December 2012 and 2011, the major actuarial assumptions used in the calculation of the total liability are as follows:
Current Period Prior Period
Discount Rate 2.86% 5.38%
Expected Rate of Salary/Limit Increase 5.00% 5.10%
Estimated Employee Turnover Rate 5.42% 4.40%
Other benefits to employees
The Bank has provided provision for undiscounted short-term employee benefits earned during the financial period as
per services rendered in compliance with the TAS 19– Employee Benefits in the accompanying unconsolidated financial
statements.
XVI. Information on tax applications
Corporate tax
The corporate tax rate is 20%. Corporate tax rate is calculated on the total income of the Bank 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.