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
79
26. ESTIMATED LOSSES ON COMMITMENTS AND CONTINGENCIES continued
c. Movements of estimated losses on commitments and contingencies:
2007 2006
Balance at beginning of year 514,399
594,084 Reversal during the year
61,409 37,670
Others 16,518
42,015
Balance at end of year 469,508
514,399
includes effect of foreign currency translation.
Management believes that the estimated losses on commitments and contingencies provided for is adequate.
27. TAXATION a. Taxes payable
2007 2006
Bank Mandiri Income Taxes:
Employee income tax - Article 21 43,921
21,824 Corporate income tax - Article 2529
1,022,689 1,345,436
Withholding tax - Article 4 2 145,591
175,985 Others
7,204 13,756
1,219,405 1,557,001
Subsidiaries 60,993
25,799 1,280,398
1,582,800
b. Tax expense
2007 2006
Tax expense - current: Bank Mandiri only
2,552,750 1,609,549
Subsidiaries 133,404
65,461 2,686,154
1,675,010
Tax benefitexpense - deferred: Bank Mandiri only
700,116 1,266,454
Subsidiaries 146
168
700,262 1,266,286
1,985,892 408,724
As explained in Note 2u, income tax for Bank Mandiri and its Subsidiaries is computed for each company as a separate legal entity consolidation is not permitted for corporate income tax filing
purposes.
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.
