PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years Ended December 31, 2008 and 2007 Expressed in millions of Rupiah, unless otherwise stated
83
26. ESTIMATED LOSSES ON COMMITMENTS AND CONTINGENCIES continued
b. By Collectibility:
2008 2007
Current 24,562,424
21,606,838 Special mention
370,863 709,154
Sub-standard -
6,783 Doubtful
25,033 -
Loss 37,742
88,643 Total
24,996,062 22,411,418
Less: Estimated losses 316,401
469,508
Commitments and Contingencies - net 24,679,661
21,941,910
c. Movements of estimated losses on commitments and contingencies:
2008 2007
Balance at beginning of year 469,508
514,399 Reversal during the year
221,393 61,409
Others 68,286
16,518
Balance at end of year 316,401
469,508
includes effect of foreign currency translation.
Management believes that the estimated losses on commitments and contingencies provided for is adequate.
27. TAXATION a. Taxes payable
2008 2007
Bank Mandiri Income Taxes:
Employee income tax - Article 21 56,412
43,921 Corporate income tax - Article 2529
2,865,154 1,022,689
Withholding tax - Article 4 2 208,366
145,591 Others
10,864 7,204
3,140,796 1,219,405
Subsidiaries 33,704
60,993 3,174,500
1,280,398
b. Tax expense
2008 2007
Tax expense - current: Bank Mandiri only
4,551,185 2,552,750
Subsidiaries 160,709
133,404 4,711,894
2,686,154
PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years Ended December 31, 2008 and 2007 Expressed in millions of Rupiah, unless otherwise stated
84
27. TAXATION continued b. Tax expense continued
2008 2007
Tax benefitexpense - deferred: Bank Mandiri only
1,936,690 700,116
Subsidiaries 21,960
146
1,958,650 700,262
2,753,244 1,985,892
As explained in Note 2u, income tax for Bank Mandiri and its Subsidiaries is computed for each company as a separate legal entity consolidation is not permitted for corporate income tax filing
purposes.
c. Tax expense - current
The reconciliation between profit before tax benefitexpense as shown in the consolidated statements of profit and loss and income tax computations, and the related current tax expense for
Bank Mandiri and its Subsidiaries is as follows:
2008 2007
Consolidated income before tax expense and minority interests 8,068,560
6,333,383 Less: Income before tax expense of Subsidiaries after elimination
141,244 134,525
Income before tax expense and minority interests - Bank Mandiri only 7,927,316
6,198,858 Adddeduct permanent differences:
Non-deductible expensesNon-taxable income 189,537
52,436 Losses from Hong Kong branch
62,367 -
Others 35,465
15,126 Adddeduct temporary differences:
Over provision for losses on loans 5,897,248
1,933,422 Overunder provision for losses on earning assets
other than loans 840,628
104,899 Over provision for personnel expenses
378,487 506,484
Overunder depreciation of fixed assets 111,736
19,684 Overunder provision for losses arising from legal cases
14,166 22,293
Losses on decrease in market value of securities and Government Recapitalization Bonds
23 14,464
Over provision of repossessed assets -
23,838 Difference in net realizable value of abandoned properties
7,952 486
Overunder provision of abandoned properties 8,105
46,110 Recovery of credit 116,151 90,915
Under provision for estimated losses on commitments and contingencies
154,090 44,209
Estimated taxable income 15,170,675
8,509,224 Estimated tax expense - current
Bank Mandiri only 4,551,185
2,552,750 Subsidiaries
160,709 133,404
Estimated tax expense - current 4,711,894
2,686,154
The amount in 2008 represents loans recovery amounting to Rp116,151 to which the deferred tax impact was not computed. The amount in 2007 represents loans recovery amounting to Rp90,915 to which the deferred tax impact was not computed.
