ÇELEBİ AR19-270720 (1)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS AT AND FOR THE YEAR ENDED 31 DECEMBER 2019 ÇELEBİ HAVA SERVİSİ ANONİM ŞİRKETİ Convenience Translation into English of Consolidated Financial Statements Originally Issued in Turkish (Amounts expressed in Turkish Lira (“TL”) unless otherwise indicated.) 107 Çelebi Ground Handling Inc. 2019 Annual Report NOTE 29 - TAX ASSETS AND LIABILITIES December 31, 2019 December 31, 2018 Current period corporate tax provision 39.814.770 36.342.656 Less: prepaid corporate taxes (38.701.780) (24.151.601) Current income tax liability - net (*) 1.112.990 12.191.055 Deferred tax assets 102.587.821 98.539.804 Deferred tax liabilities (21.497.424) (5.876.935) Deferred tax assets - net 81.090.397 92.662.869 (*) 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, 2018: 22%). 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. The corporate tax rate in force in Hungary is 9% effective as of January 1, 2018. In India, the corporate tax rate is 29,12% and 34,94% for the fiscal year of 2019 (2018: 29,12% - 34,94%). 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 2019 (2018: 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). For the periods ended on December 31, 2019 and December 31, 2018, tax expenses of the Group are as follows: January 1- December 31, 2019 January 1- December 31, 2018 - Current period corporate tax (55.074.586) (34.366.471) - Deferred tax income/(expense) 35.616.893 28.004.641 (19.457.693) (6.361.830)