Note 2-20

(20) NPL disposal costs (temporary gap) that cannot be treated as losses for tax purposes, as well as losses carried forward for tax purposes, can be expected to contribute to reducing taxable profits in the future. The amount of tax on income equivalent to such costs can be estimated, based on the current effective tax rate. The estimated tax amount, by which future tax will be reduced, can be booked as a deferred tax asset under the tax effect accounting system as long as taxable profits in excess of the deferred tax asset amount are projected for the period where the temporary gap will be covered or losses are carried forward. If projected taxable profits fail to be achieved, there will be no tax-reducing effect. In such case, the deferred tax asset will disappear, depleting the capital base.