ÇHS AR21-ENG-030622

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2021 ÇELEBİ HAVA SERVİSİ ANONİM ŞİRKETİ AND ITS SUBSIDIARIES (Amounts expressed in Turkish Lira (“TL”) unless otherwise indicated.) 107 Çelebi Ground Handling Inc. 2021 Annual Report NOTE 29 - TAX ASSETS AND LIABILITIES 31 December 2021 31 December 2020 Current period corporate tax provision 49.917.869 28.760.852 Less: prepaid corporate taxes (8.197.661) (2.777.130) Current income tax (asset) / liability, net (*) 41.720.208 25.983.722 Deferred tax assets 256.168.334 156.752.202 Deferred tax liabilities (85.460.436) (29.562.138) Deferred tax assets - net 170.707.898 127.190.064 (*) Current income tax assets and current income tax liabilities from the different subisidiaries of the Group have been separately presented as net in the balance sheet. 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 25% (31 December 2020: 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 1 January 2018. In India, the corporate tax rate is reduced to 25,17% from 34,6% as of 1 April 2020 and companies can choose to apply either rate (2020: 29,12% and 34,94%). In Germany, the corporate tax rate is 31,925% for fiscal year 2021 (2020: 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 (such as research and development expenses). For the periods ended on 31 December 2021 and 2020, tax expenses are as follows: 1 January - 31 December 2021 1 January - 31 December 2020 - Current period corporate tax (60.961.994) (49.742.669) - Deferred tax income/ (expense) (4.150.508) 32.873.895 (65.112.502) (16.868.774)