BIRLESIM_2021_ANNUAL REPORT

BİRLEŞİM MÜHENDİSLİK 2021 ANNUAL REPORT 197 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 28. INCOME TAXES (INCLUDING DEFERRED TAX ASSETS AND LIABILITIES (continued) Income Tax Withholding In addition to corporate tax, income tax withholding must be calculated separately on dividends, excluding those distributed to full-fledged corporations and foreign companies’ branches in Turkey, which receive dividends in case of distribution and declare these dividends by including them in corporate income. Income tax withholding was applied as 10% in all companies between April 24, 2003 and July 22, 2006. This rate has been applied as 15% as of 22 July 2006, with the Council of Ministers Decision No. 2006/10731. Dividends that are not distributed and added to the capital are not subject to income tax withholding. Based on the investment incentive certificates obtained before 24 April 2003, a tax withholding of 19.8% is required on the investment incentive amount. No withholding tax is applied for investment expenditures made after this date without incentive certificate. Deferred Tax The Group recognizes deferred tax assets and liabilities for temporary timing differences arising from the differences between the tax base legal financial statements and the financial statements prepared in accordance with TFRS. These differences are generally due to the fact that some income and expense items are included in different periods in tax base financial statements and financial statements prepared in accordance with TFRS, and these differences are stated below. In the calculation of deferred tax assets and liabilities, tax rates expected to be applied in the periods when assets are converted into income or debts are paid are taken into account (2020: 22%, 2021: 25%). 1 January - 31 December 2021 1 January - 31 December 2020 1 January Openning Balance (3.546.407) (12.879.765) Deferred Tax Income/(Expense) (11.669.443) 9.076.684 Effect of Sales of Subsidiaries - 505.200 Actuarial Loss/(Gain) 140.147 (248.526) Deferred Tax Income/(Expense) (15.075.703) (3.546.407)