CELEBI GROUND HANDLING ANNUAL REPORT 2018

ÇELEBİ HAVA SERVİSİ A.Ş. 102 Çelebi Ground Handling 2018 Annual Report NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2018 (Amounts expressed in Turkish Lira (“TL”) unless otherwise indicated.) Convenience Translation into English of Consolidated Financial Statements Originally Issued in Turkish NOTE 27 - FINANCIAL EXPENSES January 1- January 1- December 31, December 31, 2018 2017 Foreign exchange losses (136.812.378) (48.853.754) Interest expenses (24.575.167) (18.314.058) Financial expenses incurred within the scope of TFRIC 4-12 (1.642.786) (854.423) Other financial expenses (2.653.786) (2.844.354) (165.684.117) (70.866.589) NOTE 28 - TAX ASSETS AND LIABILITIES December 31, 2018 December 31, 2017 Current period corporate tax provision 36.342.656 27.100.828 Less: prepaid corporate taxes (24.151.601) (28.245.139) Current income tax liability - net (*) 12.191.055 (1.144.311) Deferred tax assets 98.539.804 54.043.004 Deferred tax liabilities (5.876.935) (5.646.811) Deferred tax assets - net 92.662.869 48.396.193 (*) Current income tax assets and current income tax liabilities from the different subisidiaries of the Group have been separately presented in the consolidated statement of financial position. Income tax Turkish tax legislation does not permit a parent company, its subsidiaries, to file a tax return on its consolidated financial statements. Therefore, the tax liabilities of the Group’s consolidated financial statements are calculated separately for all companies included in the scope of consolidation. In Turkey, the corporate tax rate is 20% (will be 22% for taxation periods of 2018, 2019 and 2020) (December 31, 2017: %20). The corporate tax rate is applied to the net corporate income to be deducted from deduction of exemptions and reductions in tax laws and an addition of expenses not subject to deduction according to tax legislation. In 2014, the corporate tax rate in Hungary, has been changed as 19% up to a fiscal profit of HUF 500.000.000 and 10% for a fiscal profit over HUF 500.000.000. Effective from January 1, 2018, the corporate tax rate in Hungarian will be implemented as 9%. In India, the corporate tax rate is 34,94% (2017: 34,6%) for the fiscal year of 2018. The corporate tax rate is applicable on the total income of companies after adjusting for certain disallowable expenses, income tax exemptions (affiliation privilege, investment allowance exemption, etc.) and income tax deductions (like research and development expenses). In Germany, the corporate tax rate is 31,925% for fiscal year 2018 (2017: 31,925%). The corporate tax rate is applicable on the total income of companies after adjusting for certain disallowable expenses, income tax exemptions (affiliation privilege, investment allowance exemption, etc.) and income tax deductions (like research and development expenses).