Income tax expense (Tables)

12 Months Ended

Dec. 31, 2019


	2019			2018			2017
Current income tax expense		(570,509	)		(654,953	)		(437,967	)
Deferred income tax (expense)/credit		(215,121	)		159,472			(133,791	)

Total income tax expense		(785,630	)		(495,481	)		(571,758	)

Summary of Income Tax Relating to Each Component of Other Comprehensive Income

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
2019
Foreign currency translation differences		536,796			(99,234	)		437,562
Change in cash flow hedge reserve		(217,877	)		47,933			(169,944	)
Change in cost of hedging reserve		75,605			(16,634	)		58,971
Fair value reserve		4,451			(979	)		3,472
Hedges of net investments in foreign operations		(55,389	)		12,186			(43,203	)
Remeasurements of employee termination benefits		(36,385	)		8,005			(28,380	)

		307,201			(48,723	)		258,478

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	)

Summary of Reconciliation of Effective Income Tax Expense

Reconciliation of income tax expense


	2019			2018			2017
Profit from continuing operations before income tax expense		3,289,884			2,672,816			2,609,517
(Loss) from discontinued operations before income tax expense		772,436			—			—

Profit before income tax expense		4,062,320			2,672,816			2,609,517

Tax at the Turkey’s tax rate		(893,710	)		(588,020	)		(521,903	)
Difference in overseas tax rates		(12,580	)		7,617			4,133
Effect of exemptions (*)		123,878			198,160			73,916
Effect of amounts which are not deductible and permanent differences		(134,538	)		(91,778	)		(102,102	)
Tax exemption from subsidiary sale (**)		169,936			24,268			—
Change in unrecognized deferred tax assets (***)		(46,865	)		(50,551	)		(41,340	)
Adjustments for current tax of prior years		3,880			2,510			11,280
Tax effect of investment in associate and joint venture		2,592			—			—
Other		1,777			2,313			4,258

Total income tax expense		(785,630	)		(495,481	)		(571,758	)

(*)

Mainly comprises of research and development tax credit exemption effect. For the year ended 31 December 2018, includes the exemption effect of Fintur amounted to TL 76,164.

(**)

For the years ended 31 December 2019 and 2018, includes the Group’s transfer of its total shareholding in Fintur and Azerinteltek, respectively (Note 39).

(***)

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