PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2009, 2008 AND 2007
Expressed in millions of Rupiah, unless otherwise stated
Appendix 589 28. TAXATION continued
c. Tax expense - Current year continued
The calculation of corporate income tax for the years ended 31 December 2008 and 2007 conforms with Bank Mandiri’s annual tax return.
The corporate income tax calculation for the year ended 31 December 2009 is an estimated income tax payable. The Bank has not yet filed its 2009 annual tax returns.
Under the taxation laws of Indonesia, Bank Mandiri and Subsidiaries submit tax returns on the basis of self assessment. The Directorate General of Taxation may assess or amend taxes within 5
five years as the time to the tax becomes due.
On 2 September 2008, the Government has enacted amendment to the income tax law with effect from 1 January 2009, that the income tax for Corporation will be set to a fix rate as 28.00 starting
in 2009 and further reduced to 25.00 starting 2010. The change in tax rate has resulted to the adjustment in the calculation of deferred tax.
Starting 2009, Bank Mandiri has been recognising written-off loans in the current year as deduction of gross profit by fullfiling three requirements stipulated in the recognition of written-off receivables
as deduction of gross income according to UU No. 36 Year 2008.
d. Tax expense - deferred
The reconciliation between estimated income tax expense, which calculated using applicable tax rates based on commercial income before tax expense, with estimated income tax as reported in
the statements of income for the years ended 31 December 2009, 2008 and 2007 are as follows:
2009 2008
2007
Consolidated income before tax expense and minority interests
10,824,074 8,068,560
6,333,383 Less: Income before tax expense of Subsidiaries
after elimination 234,496
141,244 134,525
Income before tax expense and minority interests - Bank Mandiri only
10,589,578 7,927,316
6,198,858 Estimated income tax expense based on
applicable tax rates 2,9 65,081
2,378,177 1,859,640
Increase of deferred tax from changes of tax rates and recognition of temporary
differences not yet recognised in prior years 580,442
184,952 -
Tax effect permanent differences: Losses from Hong Kong branch
742 18,710
- Non-deductible incomenon taxable expenses
41,828 56,861
15,731 Others
44,660 10,640
4,537 Recovery of loans
25,663 34,845
27,274 469,033
236,318 7,006
Tax expense - Bank Mandiri only 3,434,114
2,614,495 1,852,634
Tax expense - Subsidiaries 191,472
138,749 133,258
Tax expense - consolidated 3,625,586
2,753,244 1,985,892
Less: Current tax expense - consolidated 3,479,867
4,711,894 2,686,154
Deferred tax expensesbenefit - consolidated 145,719
1,958,650 700,262
PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2009, 2008 AND 2007
Expressed in millions of Rupiah, unless otherwise stated
Appendix 590 28. TAXATION continued
e. Deferred tax assets
