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FINANCIAL INFORMATION
CONVENIENCE TRANSLATION OF PUBLICLY ANNOUNCED UNCONSOLIDATED FINANCIAL STATEMENTS ORIGINALLY ISSUED IN TURKISH, SEE NOTE I OF SECTION THREE
ARAP TÜRK BANKASI ANONİM ŞİRKETİ
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
AT 31 DECEMBER 2015
(AMOUNTS EXPRESSED IN THOUSANDS OF TURKISH LIRA (“TL”) UNLESS OTHERWISE STATED. )
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 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%.
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 the matter of fact, the Group’s subsidiary which operates in the leasing sector has taken advantage of the investment
allowances while arranging the corporate tax returns for the year 2015 that are not depended on withholdings which
were gained during the incentive certificateless investment expenses after 24 April 2003.
Deferred taxes
The Group calculates and accounts deferred tax assets and liabilities in accordance with the “TAS 12 - Income Taxes”;
deferred tax assets and liabilities are recognized on all taxable temporary differences arising between the carrying values
of assets and liabilities in the consolidated financial statements and their corresponding balances used for taxation
purposes except for the differences not deductible for tax purposes and initial recognition of assets and liabilities which
affect neither accounting nor taxable profit.