MILLI REASURANS ANNUAL REPORT 2018

Millî Reasürans Türk Anonim Şirketi NOTES TO THE UNCONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2018 (Currency: Turkish Lira (TL)) (Convenience Translation of Financial Statements and Related Disclosures and Footnotes Originally Issued in Turkish, See Note 2.1.1) Short/long term deferred income and expense accruals include deferred commission income (Note 10) amounting to TL 758.494 TL (December 31, 2017: TL 614.358). As of December 31, 2018, the amounting of the expense accruals TL 5.802.394 (December 31, 2017: TL 4.921.575) are detailed in the table below. December 31, 2018 December 31, 2017 Dividend accrual 3.378.675 3.133.995 Other accruals 2.423.719 1.787.580 Total 5.802.394 4.921.575 Prepaid income and expense accruals are TL 268.291 (December 31, 2017: TL 356.217) consist of long-term and short term other deferred income. Corporate tax liabilities and prepaid taxes are disclosed below: December 31, 2018 December 31, 2017 Taxes paid during the year 24.474.548 37.023.057 Corporate tax liabilities (27.682.983) (44.131.400) Prepaid assets, net (3.208.435) (7.108.343) Total amount of investment incentives which will be benefited in current and forthcoming periods None. 20 Financial liabilities The Company has no any financial liabilities as of December 31, 2018 (The Company has no any financial liabilities as of December 31, 2017). 21 Deferred tax As of December 31, 2018 and 2017, deferred tax assets and liabilities are attributable to the following: December 31, 2018 December 31, 2017 Deferred tax assets/ (liabilities) Deferred tax assets/ (liabilities) Equalization provision 13.065.362 8.263.702 Provision for the pension fund deficits 8.947.362 7.867.023 Provision for doubtful receivables 855.039 478.797 Provisions for employee termination benefits 1.844.858 1.658.710 Unexpired risks reserve 726.661 1.283.492 Personnel Bonus Accrual 743.308 689.479 Time deposits 192.055 85.806 Rediscount of receivables and payables (31.612) (40.193) Amortization correction differences (271.977) (267.310) Profit commission accrual (2.028.998) (2.482.572) Valuation differences in financial assets 2.246.258 88.173 Real estate valuation differences (53.136.321) (47.424.229) Deferred tax (liabilities)/assets, net (26.848.005) (29.799.122) As of December 31, 2018, the Company does not have deductible tax losses. The Company also does not have deductible tax losses as of December 31, 2017. Millî Reasürans Annual Report 2018 146 / Unconsolidated Financial Statements and Independent Auditors’ Report