PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2016 and for the year then ended Expressed in millions of Rupiah, unless otherwise stated
146
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:
Year ended December 31, 2016
2015
Consolidated income before tax expense and noncontrolling interest
18,572,965 26,369,430
Tax calculated at applicable tax rates 4,010,865
5,368,896
Income tax effect of: Bank Mandiri
- Income not subject to tax and final tax
213,279 503,341
- Expense not deductible for tax purposes
203,513 156,932
9,766 346,409
Subsidiaries 78,297
194,545 Total tax effect
88,063 151,864
Income tax expense 3,922,802
5,217,032
According to 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 Tax payers, 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 tax payer at the minimum 183 one hundred and eighty three calendar days in a period of 1 one fiscal year.
Tax payer should attach 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.
PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2016 and for the year then ended Expressed in millions of Rupiah, unless otherwise stated
147
33. TAXATION continued d. Tax expense - current continued
Based on Certificate No. DEI2017-0154 dated January 5, 2017 regarding Monthly Stock Ownerships of Publicly Listed Companies Report and the Recapitulation form No X.H. 1-2 dated
December 31, 2016 from PT Datindo Entrycom Securities Administration Agency to Bank Mandiri, it was stated that the Bank has fullfilled the requirements to obtain the income tax rate reduction to
become 20 based on GR No. 77 Year 2013 and GR No. 56 Year 2015. In accordance with Minister of Finance Regulation No. 238PMK.032008, FSA previously “Bapepam-LK” will then
later submit the information regarding the fulfillment by the Bank to the Tax office. Therefore the Bank’s corporate income tax for the year ended December 31, 2016 are calculated using the tax
rate of 20. The Bank believes that it can fulfill the requirements to obtain the reduction in income tax rate for the
year ended December 31, 2016. The calculation of income tax for the year ended December 31, 2016 as described above will be the
basis for filling the Annual Tax Return SPT of Corporate Income Tax.
e. Deferred tax assets - net
Deferred tax arises from temporary differences between book value based on commercial and tax are as follows:
December 31, 2016
Beginning balance
Credited charged to
consolidated statement of
profit or loss and other
comprehensive income
Charged to equity
Ending balance
Bank Mandiri Deferred tax assets:
Loans write-off until 2008 1,248,713 42,501
- 1,206,212
Provision for post-employment benefit expense, provision for bonuses, leave and holiday THR entitlements 1,068,972 138,191
40,044 1,247,207
Allowance for impairment loan losses 1,111,707 1,149,720 -
2,261,427 Allowance for impairment losses on financial assets other
than loans 426,812
17,795 -
444,607 Unrealised losses on decrease in fair value
of marketable securities and government bonds available for sale
375,769 -
105,624 270,145
Allowance for estimated losses arising from legal cases 107,646
56,566 -
51,080 Estimated losses on commitments and contingencies
74,146 35,517
- 38,629
Allowance for possible losses on abandoned properties 29,819
692 -
29,127 Allowance for possible losses on repossessed assets
1,994 -
- 1,994
Accumulated losses arising from difference in net realisable value of repossessed assets
1,969 -
- 1,969
Unrealised losses on decrease in fair value of marketable securities and
government bonds - fair value through profit or loss 4,657
1,153 -
3,504 Accumulated losses arising from difference in
net realisable value of abandoned properties 189
15 -
174
Deferred tax assets 4,452,393
1,169,262 65,580
5,556,075 Deferred tax liabilities:
Unrealised gain on BOT transactions 21,828
21,828 -
- Net book value of fixed assets
111,884 8,602
- 120,486
Deferred tax assets - Bank Mandiri only 4,318,681
1,182,488 65,580
5,435,589
Net deferred tax assets - Subsidiaries 515,841
554,512
Total consolidated deferred tax assets - net 4,834,522
5,990,101
