MILLI_RE_ANNUAL REPORT 2022

21 Deferred tax As of December 31, 2022, and 2021, deferred tax assets and liabilities are attributable to the following: December 31, 2022 December 31, 2021 Deferred tax assets/(liabilities) Deferred tax assets/(liabilities) Unexpired risks reserve 3.291.046 35.844.515 Equalization provision 59.979.691 32.568.287 Provision for the pension fund deficits 58.816.795 20.599.702 Provisions for employee termination benefits 7.637.199 2.998.408 Provision for doubtful receivables 1.946.412 2.484.919 Personnel bonus accrual 1.842.012 1.114.203 Valuation differences in financial assets 6.012.445 119.584 Rediscount of receivables and payables (26.240) (7.613) Time deposits 398.499 (507.293) Amortization correction differences (1.739.745) (797.643) Profit commission accrual (10.968.672) (4.767.444) Real estate valuation differences (294.503.668) (74.513.476) Deferred tax (liabilities)/assets, net (167.314.226) 15.136.149 As of 31 December 2022, the Company has a deductible financial loss of 751.610.679 TL that can be used until 31 December 2027. The Company reviewed the business plan as of December 31, 2022 and estimated the risk of not being able to use the financial losses, which can be deducted in the coming years, and as of December 31, 2022, no deferred tax was calculated on the aforementioned accumulated financial losses with the precautionary principle (31 December 2021: None). Movement of deferred tax assets are given below: December 31, 2022 December 31, 2021 Opening balance at 1 January 15.136.149 (12.731.169) Deferred tax income/expense (103.908.015) 23.899.257 Deferred tax income/expense recognised in equity (78.542.360) 3.968.061 Deferred tax (assets)/liabilities: (167.314.226) 15.136.149 22 Retirement benefit obligations Employees of the Company are the members of “Milli Reasürans Türk Anonim Şirketi Emekli ve Sağlık Sandığı Vakfı (“Milli Reasürans Pension Fund”) which is established in accordance with the temporary Article 20 of the Social Security Act No: 506. As per the provisional article No: 23 of the Banking Law No: 5411, pension funds of the banks which were established within the framework of Social Security Institution Law, should be transferred to the Social Security Institution within three years after the publication of the prevailing Banking Law enacted on November 1, 2005. However, the said article of the Banking Law has been vetoed by the President on November 2, 2005 and the execution of the article was ceased based on the Supreme Court’s decision numbered 2007/33 and dated March 22, 2007. The justified decision of Supreme Court is published in Official Gazette dated December 15, 2007 and numbered 26731. Supreme Court asserted possible losses on acquired rights of employees of pension fund as reason for cancellation decision. Following annulment of the temporary Article 23 of the Banking Law, the new law “Amendments to the Social Security and General Health Insurance Act Including Certain Laws and Decrees” was published in the Official Gazette dated May 8, 2008 and came into force. The new law requires transfer of the participants or beneficiaries of pension funds to Social Security Institution as at the effective date of the Act within 3 years and prescribe the extension period of the transfer as maximum of two years upon the order of the Cabinet. Accordingly, the three-year period expired on May 8, 2011 was extended to the May 8, 2013. On March 8, 2012, “Amendments to the Social Security and General Health Insurance Act Including Certain Laws and Decrees” numbered 28227, was published on Official Gazette and 4 th article of this act changed “two years” phrase as “four years” which takes part on second sentence of first clause of 20 th article of the code numbered 5510. Also, under the scope of Decree of the Council of Ministers numbered 2013/4617 was published on Official Gazette numbered 28636, on May 3, 2013 and 20 th temporary article 161 MİLLİ RE 2022 ANNUAL REPORT Notes to the Unconsolidated Financial Statements As of December 31, 2022 Millî Reasürans Türk Anonim Şirketi (Currency: Turkish Lira (TL)) Convenience Translation of Financial Statements and Related Disclosures and Footnotes Originally Issued in Turkish, See Note 2.1.1 RISKS AND ASSESSMENT OF THE GOVERNING BODY UNCONSOLIDATED FINANCIAL STATEMENTS TOGETHER WITH INDEPENDENT AUDITORS’ REPORT THEREON CONSOLIDATED FINANCIAL STATEMENTS TOGETHER WITH INDEPENDENT AUDITORS’ REPORT THEREON FINANCIAL STATUS