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İş Bankası
Annual Report 2013
Financial Information and Risk Management
TÜRKİYE İŞ BANKASI A.Ş.
Notes to the Consolidated Financial Statements
for the Year Ended 31 December 2013
In line with the new law, the Bank had an actuarial valuation made which is actual and technical actuarial report dated 10 January
2014 in the amount specified in the corresponding place has given for the aforementioned pension fund as of 31 December 2013.
The actuarial assumptions used in the related actuarial report are given in Section Five Note II-h. Besides the Parent Bank, Milli
Reasürans T.A.Ş. and Türkiye Sınai Kalkınma Bankası A.Ş. also had an actuarial audit as of 31 December 2013 for the pension fund.
According to actuarial report as at 7 January 2014, the amount of actuarial and technical deficit which was measured according this
report and reflected to the year-end financial statements, was kept in the financial statements for the current period fromMilli
Reasürans T.A.Ş. According to actuarial report as at 24 January 2014, there is not any additional operational or actuarial liability from
Türkiye Sınai Kalkınma Bankası to the Group at 31 December 2013.
Up to now, there has not been any deficit in İşbank Members’ Supplementary Pension Fund (Türkiye İş Bankası A.Ş. Mensupları
Munzam Sosyal Güvenlik ve Yardımlaşma Sandığı Vakfı), which has been founded by the Parent Bank employees in accordance with
the rules of the Civil Code and which provides subsequent retirement benefits; and the Parent Bank has made no payment for this
purpose. It is believed that the assets of this institution are capable of covering its total obligations, and that it shall not constitute
an additional liability for the Parent Bank. The same is valid for the supplementary pension funds of the employees of Anadolu
Türkiye Sınai Kalkınma Bankası A.Ş., Milli Reasürans T.A.Ş. and Anadolu Anonim Türk Sigorta Şirketi, which are among the other
financial institutions of the Group.
XXI. Taxation
1. Corporate Tax:
Turkish tax legislation does not permit a parent company and its subsidiary to file a consolidated tax return. Therefore, provisions for
taxes, as reflected in the accompanying consolidated financial statements, have been calculated on a separate-entity basis.
In accordance with the Article 32 of the Corporate Tax Law No: 5520, the corporate tax rate is calculated at the rate of 20%. As per
the related law, temporary tax is calculated and paid quarterly in line with the principles of the Income Tax Law and at the corporate
tax rate. The temporary tax payments are deducted from the current period’s corporate tax. The temporary provisional tax for the
end of the year 2013 will be paid in February 2014 and will be offset with the current period’s corporate tax.
Tax expense is the sum of the current tax expense and deferred tax charge. Current period tax liability is calculated over taxable
profit. Taxable profit is different from the profit in the income statement since taxable income or deductible expenses for the
following years and non-taxable and non-deductible items are excluded. Current taxes are shown in the financial tables by offsetting
with prepaid taxes.
Within the framework of the Corporate Tax Law numbered 5520, 75% of the gains on the sale of the participation shares, which
were held in the assets for a minimum of 2 whole years and 75% of the gains on the sale of immovables are exempt from tax
provided that they are added to the capital as set forth by the Law or that they are kept in a special fund under liabilities for a period
of 5 years.
2. Deferred Tax:
Deferred tax is recognized on differences between the carrying amounts of assets and liabilities in the financial statements and
the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all
taxable temporary differences and deferred tax assets are recognized to the extent that it is probable that taxable profits will be
available against which deductible temporary differences can be utilized. General provisions that are allocated for possible future
risks are included in the tax base and they are not subject to deferred tax calculation. No tax assets or liabilities are recognized for
the temporary timing difference that affects neither the taxable profit nor the accounting profit and that arises from the initial
recognition in the balance sheet, of assets and liabilities, other than the goodwill and mergers.
The carrying values of deferred tax assets are reviewed at each balance sheet date and reduced to the extent that it is no longer
probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax is measured at enacted tax rates prevailing in the period when the assets are realized or liabilities are settled, and
the tax is recorded as income or expense in the income statement. Nonetheless, if the deferred tax is related to assets directly
associated with the equity in the same or different period, it is directly recognized in the equity accounts.
Deferred tax assets and liabilities in the financial statements of banks and companies are shown by way of offsetting. In the
consolidated financial statements, on the other hand, the deferred tax assets and liabilities that come from the companies as offset
are separately shown in the assets and liabilities.
