Income tax expense (Tables)

12 Months Ended

Dec. 31, 2018


	2018			2017			2016
Current income tax expense		(654,953	)		(437,967	)		(200,663	)
Deferred income tax (expense)/credit		159,472			(133,791	)		(222,497	)

Total income tax expense		(495,481	)		(571,758	)		(423,160	)

Income tax expense is attributable to profit from continuing operations.


Income tax relating to each component of other comprehensive income
	Before tax			Tax (expense)/ credit			Net of tax
2018
Foreign currency translation differences		850,188			(226,667	)		623,521
Change in cash flow hedge reserve		19,156			(4,214	)		14,942
Change in cost of hedging reserve		(347,602	)		76,472			(271,130	)
Remeasurements of employee termination benefits		12,699			(2,794	)		9,905

		534,441			(157,203	)		377,238

2017
Foreign currency translation differences		100,149			(107,299	)		(7,150	)
Remeasurements of employee termination benefits		(3,738	)		748			(2,990	)

		96,411			(106,551	)		(10,140	)

2016
Foreign currency translation differences		218,472			(87,381	)		131,091
Remeasurements of employee termination benefits		(34,532	)		7,066			(27,466	)

		183,940			(80,315	)		103,625

Reconciliation of income tax expense


	2018			2017			2016
Profit from continuing operations before income tax expense		2,672,816			2,609,517			2,009,127
(Loss) from discontinued operations before income tax expense		—			—			(42,164	)

Profit before income tax expense		2,672,816			2,609,517			1,966,963

Tax at the Turkey’s tax rate		(588,020	)		(521,903	)		(393,393	)
Difference in overseas tax rates		7,617			4,133			(15,935	)
Effect of exemptions (*)		198,160			73,916			104,244
Effect of amounts which are not deductible		(91,778	)		(102,102	)		(78,571	)
Tax exemption from subsidiary sale(**)		24,268			—			—
Utilization of previously unrecognized tax losses		—			—			1,253
Change in unrecognized deferred tax assets (***)		(50,551	)		(41,340	)		(30,616	)
Adjustments for current tax of prior years		2,510			11,280			(8,176	)
Tax effect of investment in associate		—			—			—
Other		2,313			4,258			(1,966	)

Total income tax expense		(495,481	)		(571,758	)		(423,160	)

(*)	Mainly comprises of research and development tax credit and the exemption effect of Fintur amounted to TL 76,164.

(**)	The Group’s transfer of its total shareholding in Azerinteltek controlled by Inteltek to one of other shareholder of Azerinteltek, Baltech Investment LLC (Not 39)

(***)

Mainly comprises of tax losses for which no deferred tax asset has been recognized.