Notes to the Consolidated Financial Statements for the Year Ended
31 December 2012
According to the tax regulations in Germany, corporate gains are subject to 15% corporate tax. In addition to this, a solidarity tax of 5.5% is
calculated over this corporate tax. The tax bases for corporate are determined by adding the expenses that cannot be deducted according
to Germany regulations, to interest, commissions and other operating gains and by subtracting exemptions and deductions from these. The
corporate tax payments are made as temporary tax payments in four instalments and are deducted from the corporate tax that is finalized
at the end of the current year.
According to the Russian regulations, corporate gains are subject to 20% corporate tax. The corporate tax base is determined on accrual
basis and it is measured by adding the non-deductible expenses to the corporate income gained during the period. Companies in Russia
make an advance tax payment every month at an amount of one third of the tax liability related to the previous quarter, make quarterly tax
returns and make provisional tax payment by offsetting the advance taxes paid during the period. Final taxation period for corporate tax is
one year and the corporate tax is paid at the end of the following year’s March by considering the provisional taxes paid during the year. The
losses occurred in the previous taxation periods can be offset by the current period tax base, but provided that it is limited to the period of
the last 10 years.
United Arab Emirates
The companies operating in the free zones of Dubai are not subject to tax according to the country’s legislation.
4. Transfer Pricing:
Transfer pricing is regulated through Article 13 of Corporate Tax Law titled “Transfer Pricing through camouflage of earnings”. Detailed
information for the practice regarding the subject is found in the “General Communiqué Regarding Camouflage of Earnings through Transfer
According to the aforementioned regulations, in the case of making purchase or sales of goods or services with relevant persons/
corporations at a price that is determined against “arm’s length principle”, the gain is considered to be distributed implicitly through transfer
pricing and such distribution of gains is not subject to deductions in means of corporate tax.
XXII. Borrowings
The Parent Bank and its consolidated Group companies resort to obtaining funds from individuals and institutions residing domestically and
abroad, as may be required, by way of resorting to borrowing instruments such as syndication, securitization, collateralized borrowing and
issue of bills, bonds. Such transactions are at first carried at acquisition cost, and in the following periods they are valued at amortized cost
measured by using the internal rate of return method.
XXIII. Equity Shares and Issuance of Equity Shares
Share issuance related costs is recognized as expenses.
Dividend income related with the equity shares are determined by the General Assembly of the Shareholders.
Weighted average number of shares outstanding is taken into account in the calculation of earnings per share. In case the number of shares
increases by way of bonus issues as a result of the capital increases made by using the internal sources, the calculation of earnings per
share is made by adjusting the weighted average number of shares, which were previously calculated as at the comparable periods. The
adjustment means that the number of shares used in calculation is taken into consideration as if the bonus issue occurred at the beginning
of the comparable period. In case such changes in the number of shares occur after the balance sheet date, but before the ratification of
the financial statements to be published, the calculation of earnings per share are based on the number of new shares. The Parent Bank’s
earnings per share calculations taking place in the consolidated income statement are as follows.
Current Period
Prior Period
Profit attributable to shareholders
Weighted average number of shares (thousands)
Earnings per share – (in full TL)
XXIV. Bank Acceptances and Bills of Guarantee
Bill guarantees and acceptances are realized simultaneously with the customer payments and they are presented as possible liabilities and
commitments in the off-balance sheet accounts.
XXV. Government Incentives
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