Tax Expense - Current

PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2013 AND 2012 Expressed in millions of Rupiah, unless otherwise stated Appendix 5105 33. TAXATION continued

e. Deferred tax assets - net continued

2012 Beginning balance Credited charged to consolidated statement of comprehensive income Charged to equity Ending balance Bank Mandiri Deferred tax assets: Loans write-off until 2008 1,883,339 175,688 - 1,707,651 Allowance for impairment loan losses 609,577 240,950 - 850,527 Allowance for impairment losses on financial assets other than loans 304,215 7,845 - 296,370 Provision for post-employment benefit expense, provision for bonuses, leave and holiday THR entitlements 539,979 180,893 - 720,872 Allowance for estimated losses arising from legal cases 114,886 2,390 - 112,496 Estimated losses on commitments and contingencies 46,333 9,110 - 37,223 Allowance for possible losses on abandoned properties 33,940 - - 33,940 Allowance for possible losses on repossessed assets 2,292 298 - 1,994 Accumulated losses arising from difference in net realisable value of abandoned properties 2,069 - - 2,069 Accumulated losses arising from difference in net realisable value of repossessed assets 1,973 4 - 1,969 Unrealised losses on increasedecrease in fair value of marketable securities and Government Bonds available for sale 131,084 - 29,926 101,158 Deferred tax assets 3,669,687 226,508 29,926 3,866,269 Deferred tax liabilities: Unrealised gain on BOT transactions - 54,590 - 54,590 Unrealised gainlosses on increasedecrease in fair value of marketable securities and Government Bonds fair value through profit or loss 2,520 1,418 - 1,102 Net book value of fixed assets 18,540 14,926 - 33,466 Deferred tax assets - Bank Mandiri only 3,648,627 158,410 29,926 3,777,111 Net deferred tax assets - Subsidiaries 151,785 189,502 Total consolidated deferred tax assets - net 3,800,412 3,966,613 Deferred tax assets are calculated using applicable tax rate or substantially enacted tax rate at consolidated statement of financial position dates. Management believes that it is possible that future taxable income will be available against the temporary difference, which results in deferred tax assets, can be utilised.

f. Tax assessment letters

On 6 December 2012, the Bank received Tax Underpayment Assessment Letters SKPKB which stated underpayments of corporate income tax and Value Added Tax VAT and Tax Collection Letter penalties STP for fiscal year 2010 totalled to Rp1,108,071. Management disagree with the tax assessment result and on 4 March 2013, Bank has submitted a tax objection letter to the tax office and paid all the tax underpayment which recorded as prepaid tax. On December 2013, the Tax Office issued a decision letter to the Bank’s objection letters above and partially accepted the Bank’s objection, therefore the Tax office refunded the prepaid tax related to value added tax. Bank disagreed with the above decision letter and will submit appeal letters on the above decision letter to the Tax Court. Until the date of this consolidated financial statements, Bank is still waiting on the results of the objection for SKPKB of Income Taxes. PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2013 AND 2012 Expressed in millions of Rupiah, unless otherwise stated Appendix 5106 34. EMPLOYEE BENEFIT LIABILITIES 2013 2012 Rupiah - Provision for post-employment benefit Note 50 1,965,656 1,635,427 - Provisions for bonuses, leave and holiday entitlements 2,619,413 2,177,891 4,585,069 3,813,318 The provision for post-employment benefit such as pension fund and other long term remuneration is according to Bank and Subsidiaries’ policy which had been calculated using actuarial calculation.

35. OTHER LIABILITIES

2013 2012 Rupiah: Liability to policyholders 1,955,475 1,342,629 Payable to customers 1,271,409 1,058,361 Liability related to ATM and credit card transaction 1,001,071 1,231,126 Non controlling interest from Subsidiary’s mutual fund consolidation 857,009 777,276 Guarantee deposits 744,712 878,283 Deferred income directly attributable 555,001 653,656 Deferred income not directly attributable 181,831 142,884 Customers transfer transaction 138,046 130,256 Payable from purchase of marketable securities 726 22,940 Others 4,624,750 3,614,293 Total Rupiah 11,330,030 9,851,704 Foreign currencies: Guarantee deposits Note 61B.v 1,357,207 1,030,110 Customers transfer transaction 535,090 623,867 Deferred income not directly attributable 447,467 313,707 Other liabilities related to UPAS transactions Note 61B.v 283,127 1,075,973 Deferred income directly attributable 5,813 848 Others 207,480 883,832 Total foreign currencies 2,836,184 3,928,337 14,166,214 13,780,041 Liabilities to policy holders consists of Subsidiary’s AXA Mandiri Financial Services and Mandiri AXA General Insurance liability for future policy benefits for non unit-linked policyholders, claim payables, unearned premium income and estimated claim liabilities, amounting to Rp1,368,306, Rp35,394, Rp399,103 and Rp152,672 as at 31 December 2013 and amounting to Rp1,042,530, Rp33,526, Rp160,266 and Rp106,307 as at 31 December 2012. Payable to customers are mostly represent payable arising from marketable securities transactions done by PT Mandiri Sekuritas the Bank’s subsidiary. Liability related to ATM and credit card transactions represents payable arising from ATM transactions via ATM Bersama, ATM Link and ATM Prima network and payable to Visa and MasterCard on credit card transactions. Non- controling interest from Subsidiary’s mutual funds consolidation represents the portion of non- controling arises from consolidation of mutual funds controlled by Subsidiary AXA Mandiri Financial Services. Guarantee deposits are cash guarantee deposited by the Bank’s customers for export and import transaction and bank guarantee issuance. Deferred income directly attributable represents unamortised provisioncommissions income directly attributable to loans. Deferred income not directly attributable represents unamortised provisioncommissions income not directly attributable to loans. Payable from purchase of marketable securities represents the Bank’s liability related to purchase of marketable securities transactions that have been subsequently settled on 3 January 2014 and 3 January 2013, respectively for the year 2013 and 2012.