Tax Expense - Current

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2012 AND 2011 Expressed in millions of Rupiah, unless otherwise stated Appendix 5106 32. TAXATION continued

e. Deferred tax assets - net continued

2011 Beginning balance Credited charged to consolidated statement of comprehensive income Charged to equity Realisation of provision for decrease in value Ending balance Bank Mandiri Deferred tax assets: Loans write-off until 2008 2,536,635 145,969 - 507,327 1,883,339 Allowance for impairment loan losses 1,061,120 239,319 - 212,224 609,577 Allowance for impairment losses on financial assets other than loans 672,978 234,167 - 134,596 304,215 Provision for post-employment benefit expense, provision for bonuses, leave and holiday THR entitlements 626,272 38,961 - 125,254 539,979 Allowance for estimated losses arising from legal cases 143,670 50 - 28,734 114,886 Allowance for possible losses on other assets 40,365 32,292 - 8,073 - Estimated losses on commitments and contingencies 92,016 27,280 - 18,403 46,333 Allowance for possible losses on abandoned properties 43,937 1,210 - 8,787 33,940 Allowance for possible losses on repossessed assets 29,977 21,690 - 5,995 2,292 Accumulated losses arising from difference in net realisable value of abandoned properties 2,587 - - 518 2,069 Accumulated losses arising from difference in net realisable value of repossessed assets 2,532 53 - 506 1,973 Unrealised losses on increasedecrease in fair value of marketable securities and Government Bonds available for sale 126,624 - 29,786 25,326 131,084 Deferred tax assets 5,378,713 663,069 29,786 1,075,743 3,669,687 Deferred tax liabilities: Unrealised gainlosses on increasedecrease in fair value of marketable securities and Government Bonds fair value through profit or loss 27,235 19,268 - 5,447 2,520 Net book value of fixed assets 23,450 220 - 4,690 18,540 Deferred tax assets - Bank Mandiri only 5,328,028 643,581 29,786 1,065,606 3,648,627 Provision for decrease in deferred tax assets 1,065,606 - Net deferred tax assets - Bank Mandiri only 4,262,422 3,648,627 Net deferred tax assets - Subsidiaries 138,666 151,785 Total consolidated deferred tax assets - net 4,401,088 3,800,412 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 letter

On 6 December 2012, the Bank received Tax Assessment Letters SKPKB which stated underpayments of income tax and Value Added Tax VAT and Tax Collection Letter penalties STP for fiscal year 2010 amounting to Rp1,108,071. The management does not agree with the above SKPKB and will submit objection letters for the above SKPKB to the Tax Office. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2012 AND 2011 Expressed in millions of Rupiah, unless otherwise stated Appendix 5107 33. EMPLOYEE BENEFIT LIABILITIES 2012 2011 Rupiah - Provision for post-employment benefit Note 49 1,635,427 1,404,375 - Provisions for bonuses, leave and holiday entitlements 2,177,891 1,414,811 - Provision for employees’ service free period - 10,352 Foreign currencies: - Provisions for bonuses, leave and holiday entitlements - 381 3,813,318 2,829,919 The provision for post-employment benefit such as pension fund and other long term remuneration is according to Bank and Subsidiaries’ policy which had been calculated with actuary calculation.

34. OTHER LIABILITIES

2012 2011 Rupiah: Liability to policy holders 1,302,356 695,113 Liability related to ATM and credit card transaction 1,231,126 600,894 Payable to customers 1,058,361 615,996 Guarantee deposits 878,283 715,208 Deferred income directly attributable 653,656 526,392 Deferred income not directly attributable 142,884 117,211 Payable from purchase of marketable securities 22,940 682,240 Others 3,784,822 3,878,946 Total Rupiah 9,074,428 7,832,000 Foreign currencies: Other liabilities related with UPAS transactions Note 60B.v 1,075,973 610,503 Guarantee deposits Note 60B.v 1,030,110 969,853 Deferred income not directly attributable 313,707 184,514 Deferred income directly attributable 848 937 Others 1,507,699 555,745 Total foreign currencies 3,928,337 2,321,552 13.002.765 10,153,552 Liabilities to policy holders consists of Subsidiary’s liability for future policy benefits for non unit-linked policy holders, claim payables, unearned premium income and estimated claim liabilities, amounting to Rp1,042,530, Rp33,120, Rp163,642 and Rp63,064 as at 31 December 2012 and amounting to Rp511,321, Rp25,067, Rp118,476 and Rp40,249 as at 31 December 2011, respectively. Payable to customers are mostly represent payable arising from marketable securities transactions by PT Mandiri Sekuritas the Bank’s subsidiary. Liability related to ATM and credit card transactions represents payable arising from ATM transactions within ATM Bersama network and payable to Visa and MasterCard on credit card transactions. Guarantee deposits are cash guarantee deposited by the Bank’s customers for export and import transaction and bank guarantee issuance. Deferred income directly attributable presents unamortised provisioncommissions income directly attributable to loans. Deferred income not directly attributable represents unamortised provisioncommissions income not directly attributable to loans. Other liabilities related to UPAS transactions represents liability to financing bank in foreign currencies related to UPAS payable to importer. Payable from purchase of marketable securities represents the Bank’s liability relatied to purchase of marketable securities transactions that have been subsequently settled on 3 January 2013. Others mostly consist of inter-office account, liabilities related to import transaction, and suspense such as settlement of customer’s financial transaction such as money transfer.