TAXATION continued c. Corporate income tax expense - current continued

PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS June 30, 2004 and 2003, and April 30, 2003 Expressed in millions of Rupiah, unless otherwise stated 92

29. TAXATION continued c. Corporate income tax expense - current continued

Tax Decisions and Tax Assessments continued On June 23, 2003, the Directorate General of Taxation issued tax decision letter No. 00005506010512003, increasing the taxable income for 2001 by Rp2,342,573 to become Rp6,746,964. The letter confirmed that Bank Mandiri has no corporate income tax liability for 2001 due to utilization of tax losses. On June 23, 2003, the Directorate General of Taxation issued tax decision letter No. 000014060205103, reducing the tax loss for 2002 by Rp7,659,860 to become a net profit for 2002 of Rp1,288,881. The letter confirmed that Bank Mandiri has no corporate income tax liability for 2002 due to utilization of tax losses. On October 29, 2003, Bank Mandiri received Tax Assessment Letters SKPKB dated October 24, 2003 in relation to the tax audit of PT Bank Dagang Negara Persero for the period from January 1, 1999 through July 31, 1999. The letters stated that PT Bank Dagang Negara Persero had liabilities totaling Rp717,229 for the following taxes: employee income tax-article 21 of Rp172,378, withholding tax-article 23 of Rp301, VAT of Rp1,501, and tax-article 4 2 final and tax on rental of land and buildings of Rp542,846, and Tax Collection Letter STP on VAT of Rp203. The Bank has sent Tax Objection Letters to the tax office Note 66. On December 29, 2003, the Bank received Tax Collection Enforcement Letter Surat Paksa No. 231WPJ.07KP.01082003 regarding the above referenced tax assessment. The Bank has sent a Cancellation Request Letter Surat Gugatan to the tax court Note 66. On May 7, 2004, the Bank received Decision Letter No. KEP-205WPJ.07BD.052004 from the Directorate General of Taxes in relation to the objection on VAT tax assessment which reduced the assessed amount from Rp1,501 to Rp888. PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS June 30, 2004 and 2003, and April 30, 2003 Expressed in millions of Rupiah, unless otherwise stated 93

29. TAXATION continued c. Corporate income tax expense - current continued