BIRLESIM_MUHENDISLIK 2023 ANNUAL REPORT

BİRLEŞİM MÜHENDİSLİK 2023 ANNUAL REPORT 190 Birleşim Mühendislik Isitma Soğutma Havalandirma Sanayi Ticaret A.Ş. and its Subsidiaries (Amounts are expressed in terms of purchasing power of Turkish Lira (“TL”) as of December 31, 2023 unless otherwise stated.) Notes to the Consolidated Financial Statements For the Year Ended 31 December 2023 26. INCOME TAXES (INCLUDING DEFERRED TAX ASSETS AND LIABILITIES) (Continued) Corporate tax The required provisions are reserved in the accompanying financial statements for the estimated tax liabilities with regards to the current period operating results of the Group. February July 15, 2023 and October 30659, published in the Official Gazette No. 7456 “Law on the Creation of Additional Motor Vehicle Tax for Compensation of Economic Losses Caused by Earthquakes on February 6, 2023 and Amendments to Some Laws and Decree Law No. 375”, the corporate tax rate has been increased by 5 percentage points, and the corporate tax discount rate to be applied to export earnings has been increased to 5 percentage points. With this amendment, the corporate tax rate has been increased from 20% to 25% (December 31, 2022: 23%). “Communique on Amendments to the General Communique on Corporate Tax (Serial No: 1) (Serial No: 18)” published in the Official Gazette No. 31491 dated May 25, 2021, and with the 6th paragraph added to Article 32 of the Corporate Tax Law with the Law No. 7256, shares of institutions that were offered to the public for the first time at least 20% to be traded on the Borsa Istanbul Share Market for the first time, starting from the accounting period when the shares of institutions that were offered to the public for the first time, corporate tax rate will be applied at a discount of 2 percentage points to corporate earnings for the 5 accounting period, under the provision that the corporate tax rate will be applied at a discount of 2 percentage points it has been taken. According to the Corporate Tax Law, the financial losses shown on the declaration can be deducted from the corporate tax base of the period, provided that they do not exceed 5 years. Declarations and related accounting records can be examined by the tax office within five years and tax accounts can be revised. Dividend payments paid from joint stock companies resident in Turkey to individuals who are not residents of Turkey and legal entities who are not residents of Turkey, as well as to those who are not responsible for corporate tax and income tax and those who are exempt, are subject to 10% income tax. Dividend payouts made from resident joint stock companies in Turkey to resident joint stock companies in Turkey are not subject to income tax. In addition, income tax is not calculated if the profit is not distributed or added to the capital. Deferred tax The Group accounts for the deferred tax assets and liabilities for the temporary timing differences resulting from the differences between the statutory financial statements that set the basis of the tax and the financial statements prepared according to TFRS. The said differences in general result from the financial statements that set the basis of the tax, as well as their being in different periods in the financial statements prepared according to TFRS, and these differences in question are specified below. The calculation of deferred tax assets and liabilities is based on tax rates 22% and 25% (December 31, 2022: the tax rate is 23% for 2022 and 20% for other years).