PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2014 AND 2013
Expressed in millions of Rupiah, unless otherwise stated
Appendix 5106 33. TAXATION continued
d. Tax Expense - Current continued
Based on Certificate No. DEI2015-0231 dated 6 January 2015 regarding Monthly Stock Ownerships of Publicly Listed Companies Report and the Recapitulation form no X.H. 1-2 dated
2 January 2015 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. In accordance with Minister of Finance Regulation No. 238PMK.032008, the Financial Services Authority 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 31 December 2014 are calculated using the tax
rate of 20.
Based on Certificate No.DEI2014-0111 dated 3 January 2014 regarding Monthly Stock Ownership of Publicly Listed Companies Report and the Recapitulation Form No.X.H.I-2 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. Until
now, the effective date of GR No.77 Year 2013 is still in discussion which will be clarified through revision of GR No.77 year 2013. However Management believes that Bank Mandiri has met all
requirements to obtain income tax reduction for 2013 fiscal year. Therefore, the Banks corporate income tax for the year ended 31 December 2013 are calculated using the tax rate of 20.
e. Deferred tax assets - net
Deferred tax arises from temporary differences between book value based on commercial and tax calculation are as follows:
2014
Beginning balance
Credited charged to
consolidated statement of
comprehensive income
Charged to equity
Ending balance
Bank Mandiri Deferred tax assets:
Loans write-off until 2008 1,486,003
154,465 -
1,331,538 Provision for post-employment benefit expense, provision
for bonuses, leave and holiday THR entitlements 864,471
99,394 -
963,865 Allowance for impairment loan losses
919,733 50,726
- 869,007
Allowance for impairment losses on financial assets other than loans
379,792 30,388
- 410,180
Unrealised losses on increasedecrease in fair value of marketable securities and
Government Bonds available for sale 347,528
- 207,712
139,816 Allowance for estimated losses arising from legal cases
125,778 24,842
- 100,936
Estimated losses on commitments and contingencies 39,562
532 -
39,030 Allowance for possible losses on abandoned properties
30,029 210
- 29,819
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 gainlosses on increasedecrease in
fair value of marketable securities and Government Bonds fair value through profit or loss
108 1,393
- 1,501
Accumulated losses arising from difference in net realisable value of abandoned properties
189 -
- 189
Deferred tax assets 4,197,156
99,600 207,712
3,889,844 Deferred tax liabilities:
Unrealised gain on BOT transactions 57,709
37,441 -
20,268 Net book value of fixed assets
45,681 20,571
- 66,252
Deferred tax assets - Bank Mandiri only 4,093,766
82,730 207,712
3,803,324
Net deferred tax assets - Subsidiaries
228,732 385,796
Total consolidated deferred tax assets - net 4,322,498
4,189,120
PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2014 AND 2013
Expressed in millions of Rupiah, unless otherwise stated
Appendix 5107 33. TAXATION continued
e. Deferred tax assets - net continued
2013
Beginning balance
Credited charged to
consolidated statement of
comprehensive income
Charged to equity
Ending balance
Bank Mandiri Deferred tax assets:
Loans write-off until 2008 1,707,651
221,648 -
1,486,003 Allowance for impairment loan losses
850,527 69,206
- 919,733
Allowance for impairment losses on financial assets other than loans
296,370 83,422
- 379,792
Provision for post-employment benefit expense, provision for bonuses, leave and holiday THR entitlements
720,872 143,599
- 864,471
Allowance for estimated losses arising from legal cases 112,496
13,282 -
125,778 Estimated losses on commitments and contingencies
37,223 2,339
- 39,562
Allowance for possible losses on abandoned properties 33,940
3,911 -
30,029 Allowance for possible losses on repossessed assets
1,994 -
- 1,994
Accumulated losses arising from difference in net realisable value of abandoned properties
2,069 1,880
- 189
Accumulated losses arising from difference in net realisable value of repossessed assets
1,969 -
- 1,969
Unrealised losses on increasedecrease in fair value of marketable securities and
Government Bonds available for sale 101,158
- 246,370
347,528
Deferred tax assets 3,866,269
84,409 246,370
4,197,048 Deferred tax liabilities:
Unrealised gain on BOT transactions 54,590
3,119 -
57,709 Unrealised gainlosses on increasedecrease in
fair value of marketable securities and Government Bonds fair value through profit or loss
1,102 1,210
- 108
Net book value of fixed assets 33,466
12,215 -
45,681
Deferred tax assets - Bank Mandiri only 3,777,111
70,285 246,370
4,093,766
Net deferred tax assets - Subsidiaries
189,502 228,732
Total consolidated deferred tax assets - net 3,966,613
4,322,498
Deferred tax assets are calculated using applicable tax rate or substantially enacted tax rate at consolidated statement of financial position dates.
Management believes that it is possible that future taxable income will be available against the temporary difference, which results in deferred tax assets, can be utilised.
f. Tax assessment letters
Fiscal Year 2013
Based on verification process done by Tax office, on 16 December 2014, Tax Office issued Tax Underpayment Assessment Letter SKPKB which stated underpayment of corporate tax expense
in relation to the use of tax rate for 2013 fiscal year of Rp1,313,347 including penalties.
Management disagree with the Tax Underpayment Assessment Letter and will submit an objection letter to Tax Office. Bank has paid all the tax underpayment amount and recorded it as prepaid tax
on 31 December 2014.
Fiscal Year 2010
Based on tax audit result, on 6 December 2012, the Bank received Tax Underpayment Assessment Letters SKPKB which stated underpayments of corporate income tax related with loan write offs
and Value Added Tax VAT and Tax Collection Letter penalties STP for fiscal year 2010 totalled to Rp1,108,071 including penalties.
