MARKETABLE SECURITIES ISSUED continued

PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2015 and for the year then ended Expressed in millions of Rupiah, unless otherwise stated 134

33. TAXATION continued d. Tax expense - current

The reconciliation between income before tax expensebenefit as shown in the consolidated statements of comprehensive income and income tax calculations and the related estimated current tax expense for Bank Mandiri and its Subsidiaries are as follows: Year ended December 31, 2015 2014 Consolidated income before tax expense and non-controlling interests 26,369,430 26,008,015 Less: Income before tax expense of Subsidiaries - after elimination 1,900,221 2,265,732 Impact of changes in presenting investment from equity method to cost method 230,537 443,546 Income before tax expense and non-controlling interests - Bank Mandiri only 24,699,746 24,185,829 Adddeduct permanent differences: Non-deductible expensesnon-taxable income 1,732,048 398,481 Others 8,880 158 Adddeduct temporary differences: Allowance for impairment losses on loans and write-offs 799,374 1,025,957 Allowance for impairment losses on financial assets other than loans 83,164 151,940 Provision for post-employment benefit expense, provisions for bonuses, leave and holiday THR entitlements 816,084 496,970 Unrealised gain on BOT transactions 7,799 187,205 Allowance for estimated losses arising from legal cases 33,551 124,212 Provision for estimated losses on commitments and contingencies 175,580 2,660 Depreciation of fixed assets 228,162 102,848 Unrealised lossess on decrease in fair value of marketable securities and government bonds - fair value through profit or loss 15,779 6,964 Allowance for possible losses of abandoned properties - 1,051 Estimated taxable income 24,664,149 23,373,857 Estimated tax expense - current Bank Mandiri only 4,932,830 4,674,771 Subsidiaries 615,228 635,148 Estimated tax expense - current 5,548,058 5,309,919 PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2015 and for the year then ended Expressed in millions of Rupiah, unless otherwise stated 135

33. TAXATION continued d. Tax expense - current continued

The tax on Bank Mandiri and Subsidiaries Group’s profit before tax differs from the theoretical amount that would arise using the weighted average tax rate applicable to profits on the consolidated entities are follows: December 31, 2015 2014 Consolidated income before tax expense 26,369,430 26,008,015 Tax calculated at applicable tax rates 5,368,896 5,403,600 Tax effect of: Bank Mandiri - Income not subject to tax and final tax 503,341 171,684 - Expense not deductible for tax purposes 156,932 91,987 346,409 79,697 Subsidiaries 194,545 29,329 Total tax effect 151,864 50,368 Income tax expense 5,217,032 5,353,232 Under the taxation laws of Indonesia, Bank Mandiri and Subsidiaries submit the Annual Corporate Income Tax Returns to the tax office on the basis of self assessment. The Directorate General of Taxation may assess or amend taxes within 5 five years from time when the tax becomes due. Starting from 2009, Bank Mandiri has recognised written-off loans as deduction of gross profit by fullfiling the three requirements stipulated in UU No. 36 Year 2008 and Regulation of the Minister of Finance No. 105PMK.032009 dated June 10, 2009, which was amended by Regulation of the Minister of Finance No. 57PMK.032010 dated March 9, 2010. Based on UU No. 36 Year 2008 regarding Income Tax, Government Regulation No. 81 Year 2007 dated December 28, 2007 which is subsequently replaced by Government Regulation GR No. 77 Year 2013 dated November 21, 2013 and GR No. 56 Year 2015 dated August 3, 2015 regarding Reduction of Income Tax Rate for Listed Resident Corporate Tax Payers and Regulation of the Minister of Finance No. 238PMK.032008 dated December 30, 2008 regarding Procedures for Implementing and Supervising the Granting of Reduction of Income Tax Rate for Listed Resident Corporate Taxpayers, a public listed company can obtain a reduction of income tax rate by 5 lower from the highest income tax rate by fulfilling several requirements at least 40 of the total paid-up shares are listed and traded in the Indonesia Stock Exchange, the shares are owned by at least 300 parties and each party can only own less than 5 of the total paid up shares. The above requirements must be fulfilled by the taxpayer at the minimum 183 one hundred and eighty three calendar days in a period of 1 one fiscal year. Tax payer should include the certificate from Securities Administration Agency in the Annual Corporate Income Tax return by attaching form X.H.1-6 as regulated in Bapepam-LK Regulation No X.H.1 for each respective fiscal year.