BIRLESIM_2021_ANNUAL REPORT

BİRLEŞİM MÜHENDİSLİK 2021 ANNUAL REPORT 168 Birleşim Mühendislik Isıtma Soğutma Havalandırma Sanayi Ticaret A.Ş. and Its Subsidiary (All amounts expressed in Turkish Lira (“TL”)) Notes to the Consolidated Financial Statements For the Year Ended 31 December 2021 2. BASIS OF PRESENTATION OF THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) (k) Summary of significant accounting policies and assessment methods (continued) Income taxes (continued) Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Group expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities. Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when they relate to income taxes levied by the same taxation authority and the Group intends to settle its current tax assets and liabilities on a net basis. The paragraph added with the 35 th article of the Law No. 7256. Effective: From 1/1/2021 to taxpayers subject to a special accounting period (17.11.2020), to be applied to the earnings obtained as of the beginning of the special accounting period starting in the 2021 calendar year (17.11.2020) (6) to be traded for the first time in Borsa Istanbul Equity Market, at least 20% It is the first time that the shares of institutions offered to the public (excluding banks, financial leasing companies, factoring companies, financing companies, payment and electronic money institutions, authorized foreign exchange institutions, asset management companies, capital market institutions, insurance and reinsurance companies and pension companies) The corporate tax rate is applied with a discount of 2 points to the corporate earnings of the five accounting periods, starting from the accounting period in which it is presented. If the condition set in this paragraph regarding the share ratio is lost within five accounting periods from the accounting period benefiting from the discount, the taxes not accrued on time due to the application of the reduced tax rate are collected together with the default interest without applying the tax loss penalty. Based on the change in the relevant article above, the tax rate used in the calculation of deferred tax assets and liabilities is 23% over the temporary timing differences that are expected to reverse in 2021 (2020: 20%). A tax rate of 21% is used for periods longer than one year, and 18% for periods longer than two years. As a result of the tax regulations, calculations were made by deducting 2 basis points from the tax rates determined for each year. The Proposal and Justification for the Amendment of the Law on the Collection of Public Claims and Certain Laws (“Draft Law”) was prepared on April 2, 2021. With the temporary article 13 added to the Corporate Tax Law No. 5520 with the 14 th article in the aforementioned Law Proposal, it is foreseen that the current 20% Corporate Tax rate will be applied as 25% for 2021 and 23% for the year 2022. In addition, 22% was used on temporary timing differences that are expected to reverse in 2018 and 2019, and 20% on temporary timing differences that are expected to reverse in 2020 and beyond.