CELEBI GROUND HANDLING 2023 ANNUAL REPORT

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 31 DECEMBER 2023 ÇELEBİ HAVA SERVİSİ ANONİM ŞİRKETİ AND ITS SUBSIDIARIES (Amounts expressed in Turkish Lira (“TL”) unless otherwise indicated.) 123 Çelebi Ground Handling Inc. 2023 Annual Report Reconciliation of tax expenses presented in consolidated statements of income for the periods ended 31 December 2023 and 2022 are as follows: 2023 2022 Profit before tax in the financial statements 2.720.764.901 1.456.726.864 Expected tax expense according to parent company tax rate (680.656.429) (335.047.195) Differences in tax rates of subsidiaries (109.662.059) (13.064.791) Expected tax expense of the Group (790.318.488) (348.111.986) Non-deductible expenses (47.769.796) (9.287.931) Reductions 83.773.022 139.084 Effect of donations and aids 12.294.440 - Offset prior year profit loss 5.268.936 15.453.227 Tax incentive effect - 72.045.579 Deferred tax income/(expense) calculated over unused previous years’ losses (44.771.665) 3.219.679 Earthquake tax (78.858.795) - Other (35.223.545) (36.194.354) Current period tax expense of the Group (895.605.891) (302.736.702) Deferred Taxes The Group calculates deferred tax assets and liabilities on temporary differences on statement of financial position items arising from different evaluation of financial statements prepared in accordance with TAS and statutory accounting standards. In general, such temporary differences are resulted from accounting of income and expenses in different reporting periods in accordance with Tax laws and TAS accounting standards. Rates for deferred tax assets and liabilities calculated by liability method over temporary differences to be realized in future periods are 25%, 9%, 31,83% and 25,17% for Türkiye, Hungary, Germany and India, respectively. The details of cumulative temporary differences and the related deferred tax assets and liabilities calculated with currently enacted tax rates as at 31 December 2023 and 2022 are as follows: Total temporary differences Deferred tax assets (liabilities) 31 December 2023 31 December 2022 31 December 2023 31 December 2022 Deferred tax assets Personnel bonus accrual (90.337.480) (7.127.060) 22.584.370 1.425.412 Accrued sales commissions (137.157.492) (62.898.275) 34.289.373 12.579.655 Provision for employment termination benefits (214.975.933) (91.158.560) 53.749.864 18.319.742 Adjustments related with TFRS 16 (670.680.660) (450.277.924) 156.033.552 85.157.166 Provision for unused vacation rights (37.119.124) (16.404.015) 9.279.781 3.280.803 Provision for litigation and indemnity (25.850.764) (8.995.985) 6.462.691 1.799.197 Adjustments related to property plant and equipment and intangible assets (709.412.585) (338.237.990) 186.324.921 86.680.356 Investment incentives - (120.194.455) - 24.038.891 Deferred tax asset calculated over unused previous years’ losses (224.508.292) (247.056.923) 72.073.897 79.025.120 Other (371.222.681) (127.587.624) 101.147.307 28.029.230 Deferred tax assets 641.945.756 340.335.572