PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years Ended December 31, 2007 and 2006 Expressed in millions of Rupiah, unless otherwise stated
80
27. TAXATION continued c. Tax expense - current
The reconciliation between income before tax benefit expense as shown in the consolidated statements of income and estimated income tax computations, and the related current tax expense
for Bank Mandiri and its Subsidiaries is as follows:
2007 2006
Consolidated income before tax benefitexpense and minority interests 6,333,383
2,831,196 Less: Income before tax expense of Subsidiaries after elimination
134,525 66,696
Income before tax benefitexpense and minority interests - Bank Mandiri only 6,198,858
2,764,500 Adddeduct permanent differences:
Non-deductible expenses 52,436
332,524 Losses from Dili branch
- 4,876
Others 15,126
194,930 Adddeduct temporary differences:
Over provision for loans losses 1,933,422
5,160,826 Over provision for personnel expenses
506,484 264,876
Over provision of abandoned properties 46,110
- Over provision of repossessed assets
23,838 -
Lossgains on decreaseincrease in market value of securities and Government Bonds
14,464 87,001
Difference in net realizable value of abandoned properties 486
2,303 Under provision for losses on earning assets
other than loans 104,899
670,837 Loan recovery and write back
90,915 2,371,131
Under provision for estimated losses on commitments and contingencies
44,209 46,577
Under provision for losses arising from legal cases 22,293
156,026 Under depreciation of fixed assets
19,684 23,436
Estimated taxable income 8,509,224
5,365,221 Estimated tax expense - current
Bank Mandiri only 2,552,750
1,609,549 Subsidiaries
133,404 65,461
Estimated tax expense - current 2,686,154
1,675,010
The amount in 2007 includes the loans recovery amounting to Rp90,915 to which the deferred tax impact were not computed. The amount in 2006 includes the write back amounting to Rp2,336,399 and the loans recovery amounting to
Rp34,732 to which the deferred tax impact were not computed.
Under the Indonesian taxation laws, Bank Mandiri and its Subsidiaries submit tax return on the basis of self assessment. The tax authorities may assess or amend taxes within 10 years after the date of
the tax filings.
PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years Ended December 31, 2007 and 2006 Expressed in millions of Rupiah, unless otherwise stated
81
27. TAXATION continued d. Tax expense - deferred
The reconciliation between estimated income tax expense, calculated using applicable tax rates based on commercial income before tax expense, and estimated income tax as reported in the
statements of income for the years ended December 31, 2007 and 2006 are as follows:
2007 2006
Consolidated income before tax benefitexpense and minority interests 6,333,383
2,831,196 Less: Income before tax expense of Subsidiaries after elimination
134,525 66,696
Income before tax bebefitexpense and minority interests - Bank Mandiri only 6,198,858
2,764,500 Estimated income tax expense based on standard statutory rates
1,859,640 829,333
Tax effect of permanent differences: Non-deductible expenses
15,731 99,757
Losses from Dili branch -
1,463 Others
4,537 58,479
Loans write back and recovery 27,274
711,339 Provision for deferred tax assets
- 65,402
7,006 486,238
Tax expense - Bank Mandiri only 1,852,634
343,095 Tax expense - Subsidiaries
133,258 65,629
Tax expense - consolidated 1,985,892
408,724 Less: Current tax expense - consolidated
2,686,154 1,675,010
Deferred tax benefit - consolidated 700,262
1,266,286
e. Deferred tax assets
The tax effects from significant temporary differences between commercial and tax bases are as follows:
2007 2006
Bank Mandiri Deferred tax assets:
Loans write-offs 2,276,445
1,611,806 Allowance for possible losses on earning assets other than loans
659,274 690,742
Provision for personnel expenses 599,122
447,177 Allowance for possible loan losses
429,374 513,987
Estimated losses on commitments and contingencies 140,394
153,657 Allowance for possible losses arising from legal cases - net provision deferred
tax asset Rp38,926 and Rp65,402 for the years ended December 31, 2007 and 2006
22,614 29,302
Provision for abandoned properties 13,833
- Accumulated losses arising from difference in net realizable value of
abandoned properties 8,774
8,627 Provision for repossessed assets
7,150 -
Accumulated losses arising from difference in net realizable value of repossessed assets
3,135 3,135
Unrealized loss for Securities and Government Bonds available for sale
1,521 -
Deferred tax assets 4,161,636
3,458,433
