MILLI_RE_ANNUAL REPORT 2022

33 Employee benefit expenses As of December 31, 2022, and 2021, employee benefit expenses are disclosed as follows: December 31, 2022 December 31, 2021 Life Non-Life Life Non-Life Wages and salaries 357.858 92.967.020 397.726 56.044.640 Employer’s share in social security premiums 116.573 24.027.551 102.038 11.989.120 Pension fund benefits 82.140 16.505.322 62.606 7.074.857 Total (Note 32) 556.571 133.499.893 562.370 75.108.617 34 Financial costs As of December 31, 2022, TL 303.487 (1 January - 31 December 2021: 53.257) interest expense arising from leases that the Company is subject to TFRS 16 Leasing Transactions standard is recognised under “Investment Management Expenses - Interest Included” account; and the depreciation expense amounting to TL 4.130.773 is recognised under the “Depreciation and Amortization Expense” accounts (1 January - 31 December 2021: 2.205.045). 35 Income Taxes Income tax expense in the accompanying financial statements is as follows: December 31, 2022 December 31, 2021 Corporate tax expense: Corporate tax provision - (128.897.591) Deferred taxes: Origination and reversal of temporary differences (103.908.015) 23.899.257 Total income tax expense/(income) (103.908.015) (104.998.334) For the period then ended As of December 31, 2022 and 2021, a reconciliation of tax expense applicable to profit from operating activities before income tax at the statutory income tax rate to income tax expense at the Company’s effective income tax rate is as follows: December 31, 2022 December 31, 2021 Profit before taxes 992.527.781 Tax rate (%) 653.963.982 Tax rate (%) Taxes on income per statutory tax rate 248.131.945 25,00 163.490.996 25,00 Tax exempt income (217.070.740) (21,87) (86.647.102) (13,25) Non-deductible expenses 72.846.810 7,34 28.154.440 4,31 Total tax expense recognized in profit or loss 103.908.015 10,47 104.998.334 16,06 36 Net foreign exchange gains Net foreign exchange gains are presented in Note 4.2 – Financial Risk Management above. 165 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