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189
Convenience Translation of Publicly Announced Consolidated Fınancial
Statements Originally Issued in Turkish, See Note I of Section Three
Arap Türk Bankası A.Ş.
Notes to Consolidated Financial
Statements at 31 December 2014
(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
General Information
Corporate Management
Financial Information
XVI. INFORMATION ON LIABILITIES REGARDING EMPLOYEE BENEFITS
Reserve for employee termination benefits
In accordance with existing Turkish Labour Law, the Group is required to make lump-sum termination indemnities to each employee
who has completed one year of service and whose employment is terminated due to retirement or for reasons other than resignation
or as mentioned in related regislation. The computation of the liability is based upon the retirement pay ceiling announced. The
applicable ceiling amount as at 31 December 2014 is TL 3,438 (full TL) (31 December 2013: TL 3,254 (full TL)).
The Group reserved for employee severance indemnities in the accompanying consolidated financial statements using actuarial
method in compliance with the updated TAS 19-Employee Benefits. Accumulated all actuarial gains and losses in equity are
recognized in retained earnings.
As at 31 December 2014 and 31 December 2013, the major actuarial assumptions used in the calculation of the total liability are as
follows:
The Parent Bank
Current Period
Prior Period
Discount Rate
2.84%
2.83%
Expected Rate of Salary/Limit Increase
5.00%
6.00%
Estimated Employee Turnover Rate
5.44%
5.42%
Subsidiary
Current Period
Prior Period
Discount Rate
2.84%
2.38%
Expected Rate of Salary/Limit Increase
5.00%
5.00%
Estimated Employee Turnover Rate
0.00%
0.00%
Other benefits to employees
The Group has provided provision for undiscounted short-term employee benefits earned during the financial period as per services
rendered in compliance with the updated TAS 19-Employee Benefits in the accompanying consolidated financial statements.
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%.