PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2011 AND 2010
Expressed in millions of Rupiah, unless otherwise stated
Appendix 5111 29. TAXATION continued
c. Tax expense - Current continued
The corporate tax calculation for the year ended 31 December 2011 is a preliminary estimate made for accounting purpose and is subject to revision when Bank Mandiri submits its annual tax
return.
The calculation of income tax for the years ended 31 December 2010 conform to the bank’s annual tax returns.
Based on UU No. 36 Year 2008 regarding Income Tax, Government Regulation No. 81 Year 2007 dated 28 December 2007 regarding Reduction of Tax Rate of Income Tax Resident Corporate
Tax Payers and Regulation of the Minister of Finance No. 238PMK.032008 dated 30 December 2008 regarding Procedures for Implementing and Supervising the Granting of Reduction of the
Tax Rate of Income Tax Resident Corporate Taxpayers in the Form of Public Listed Company, a public listed company can obtain a reduction of income tax rate by 5 lower than the highest
income tax rate by fulfilling several requirements, which include public ownership of 40 or more of the total paid up shares and 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 6 month in a period of one fiscal year.
Based on the Letter No. DEI2012-0078 dated 9 January 2012 regarding Submission of Monthly Report of share ownership of Emiten or public listed company and recapitulation Form No.
No.X.H.I-6 from PT Datindo Entrycom Securities Administration Agency to the Bappepam-LK, it confirmed that the shares ownership of Bank Mandiri during 2011 has fulfilled all requirements to
obtain a tax rate reduction as mentioned above. In accordance with PMK 238, Bapepam-LK has reported the fulfilment of these requirements by Bank Mandiri to the Tax Office. Therefore the
Bank’s Corporate Income Tax for fiscal year 2011 is calculated using the tax rate at 20.
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 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 10 June 2009, which was amended by Regulation of the Minister of Finance No. 57PMK.032010 dated 9 March 2010.
Currently, the Bank is being audited by the Tax Office for 2010 fiscal year. Until the date of these consolidated financial statements, the tax audit result is not yet known.
PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2011 AND 2010
Expressed in millions of Rupiah, unless otherwise stated
Appendix 5112 29. 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, with estimated income tax expense as reported
in the consolidated statements of income for the years ended 31 December 2011 and 2010 are as follows:
2011 2010
Consolidated income before tax expense and non-controlling interests
16,512,035 13,972,162
Less: Income before tax expense of Subsidiaries -
after elimination 1,003,303
460,469 Impact of changes in presenting investment in Subsidiaries
by using cost method previously equity method refer to Note 2b.vi 869,011
-
Income before tax expense and non-controlling interests- Bank Mandiri only
14,639,721 13,511,693
Estimated income tax expense based on applicable tax rates
2,927,944 3,377,923
Tax effect permanent differences: Non-deductible expensesnon-taxable income
335,098 139,360
Provision for decrease in deferred tax assets -
1,040,280 Losses from overseas branches
126 13,012
Others 480
1,540 334,744
915,472
Income tax expense - Bank Mandiri only 3,262,688
4,293,395 Income tax expense - Subsidiaries
553,462 309,541
Tax expense - consolidated 3,816,150
4,602,936 Less: Current tax expense - consolidated
3,172,540 3,026,466
Deferred tax expensesbenefit - consolidated 643,610
1,576,470
In calculating estimated tax expense for the year ended 31 December 2010, the Bank still applied equity method to record investment in Subsidiaries refer to Note 2b.vi.
