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 5102 31. ESTIMATED LOSSES ON COMMITMENTS AND CONTINGENCIES
a. Transactions of commitment and contingent in the ordinary course of business of Bank Mandiri
and its Subsidiaries activities that have credit risk are as follows:
2014 2013
Rupiah: Bank guarantees issued Note 53
26,853,713 23,777,965
Committed unused loan facilities granted Note 53 26,516,482
23,503,517 Outstanding irrevocable letters of credit Note 53
2,112,407 3,039,253
Standby letters of credit Note 53 1,709,373
1,626,837 Total Rupiah
57,191,975 51,947,572
Foreign currencies: Bank guarantees issued Note 53
34,359,188 32,641,571
Committed unused loan facilities granted Note 53 7,046,517
5,405,644 Outstanding irrevocable letters of credit Note 53
13,055,707 12,178,877
Standby letters of credit Note 53 10,180,077
7,025,509 Total foreign currencies
64,641,489 57,251,601
121,833,464 109,199,173
b. By Bank Indonesia’s collectibility:
2014 2013
Current 121,384,434
108,786,436 Special mention
367,646 352,792
Sub-standard 7,064
383 Doubtful
10,551 509
Loss 63,769
59,053 Total
121,833,464 109,199,173
Less: Allowance for impairment losses 196,793
200,501
Commitments and contingencies - net 121,636,671
108,998,672
c. Movements of allowance for impairment losses on commitments and contingencies:
2014 2013
Balance at beginning of year 200,501
189,085 Reversal during the year
5,313 10,784
Others 1,605
22,200
Balance at end of year 196,793
200,501
Includes effect of foreign currencies translation.
Management believes that the allowance for impairment losses on commitments and contingencies is adequate.
d. Information in respect of classification of “non-impaired” and “impaired” is disclosed in Note 61A. e. Deposits from customers and deposits from other banks pledged as collateral for bank guarantee
and irrevocable letters of credit as at 31 December 2014 and 2013 amounting to Rp1,771,213 and Rp1,216,930, respectively Notes 21c and 24c.
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 5103 32. ACCRUED EXPENSES
2014 2013
- Fixed asset and software procurement 1,308,820
1,094,820 - Interest expenses
1,082,993 699,474
- Promotions 302,512
336,129 - Outsourcing expenses
258,401 225,672
- Employee related costs: uniform, recreation and others 70,706
88,352 - Others
856,841 882,028
3,880,273 3,326,475
Included in the fixed asset and software procurement are payables to vendors related with operational and maintenance activities for buildings, equipments, software, ATM machines and Bank’s IT System.
33. TAXATION a. Prepaid Taxes
2014 2013
Bank Mandiri 2,417,736
1,108,430 Subsidiaries
174,246 18,119
2,591,982 1,126,549
b. Tax Payables
2014 2013
Current Income tax payables Bank Mandiri
Corporate Income Tax - Article 29 744,342
1,515,818
Subsidiaries
Corporate Income Tax - Article 29 153,302
157,212 897,644
1,673,030 Taxes Payables - Others
Bank Mandiri Income taxes
Article 25 369,114
- Article 21
110,231 90,059
Article 4 2 276,939
196,617 Others
89,939 65,935
846,223 352,611
Subsidiaries 131,274
101,223 977,497
453,834 Total Taxes Payables
1,875,141 2,126,864
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 5104 33. TAXATION continued
c. Tax BenefitExpense
2014 2013
Tax expense - current: Bank Mandiri
4,674,771 4,528,782
Subsidiaries 635,148
759,707 5,309,919
5,288,489 Tax benefitexpense - deferred:
Bank Mandiri 82,730
70,285 Subsidiaries
39,417 13,699
43,313 56,586
5,353,232 5,231,903
As explained in Note 2ad, income tax for Bank Mandiri and its subsidiaries are calculated for each separate legal entity.
d. Tax Expense - Current
The reconciliation between income before tax benefitexpense as shown in the consolidated statements of comprehensive income and income tax calculations and the related estimated
current tax expense for Bank Mandiri and its Subsidiaries are as follows:
2014 2013
Consolidated income before tax expense and non-controlling interests
26,008,015 24,061,837
Less: Income before tax expense of Subsidiaries -
after elimination 2,265,732
3,408,523 Impact of changes in presenting investment in Subsidiaries
by using cost method previously equity method 443,546
1,018,151 Income before tax expense and non-controlling interests -
Bank Mandiri only 24,185,829
21,671,465 Adddeduct permanent differences:
Non-deductible expensesnon-taxable income 398,481
626,250 Others
158 5,229
Adddeduct temporary differences: Allowance for impairment losses on loans and write-offs
1,025,957 762,212
Allowance for impairment losses on financial assets other than loans 151,940
417,111 Provision for post-employment benefit expense, provisions for
bonuses, leave and Holiday THR entitlements 496,970
717,993 Unrealised gain on BOT transactions
187,205 15,597
Allowance for estimated losses arising from legal cases 124,212
66,412 Provision for estimated losses on commitments and contingencies
2,660 11,693
Depreciation of fixed assets 102,848
61,070 Unrealised lossess on decreaseincrease in
fair value of marketable securities and Government Bonds - fair value through profit or loss
6,964 6,052
Allowance for possible losses on other assets -
19,555 Allowance for possible losses of abandoned properties
1,051 9,402
Estimated taxable income 23,373,857
22,643,911 Estimated tax expense-current
Bank Mandiri only 4,674,771
4,528,782 Subsidiaries
635,148 759,707
Estimated tax expense-current 5,309,919
5,288,489
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 5105 33. TAXATION continued
d. Tax Expense - Current continued
The calculation of income tax for the year ended 31 December 2014 is a preliminary estimate made for accounting purposes and are subject to change at the time of the Bank submit its
annual tax return.
Tax calculation for the year ended 31 December 2013 in accordance with the income tax SPT Bank Mandiri.
The tax on Bank Mandiri and Subsidiaries Group’s profit before tax differs from the theoretical amount that would arise using the weighted average tax rate applicable to profits on the
consolidated entities as follows:
2014 2013
Consolidated income before tax expense and minority interest 26,008,015
24,061,837 Tax calculated at applicable tax rates:
5,403,600 5,186,425
Tax effect of: Bank Mandiri
- Income not subject to tax and final tax
171,684 150,620
- Expense not deductible for tax purposes
91,987 274,824
79,697 124,204
Subsidiaries 29,329
78,726 Total tax effect
50,368 45,478
Income tax expense 5,353,232
5,231,903
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 from 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.
Based on UU No. 36 Year 2008 regarding Income Tax, Government Regulation No. 81 Year 2007 dated 28 December 2007 which is subsequently replaced by Government Regulation GR
No. 77 Year 2013 dated 21 November 2013 regarding Reduction of Income Tax Rate for 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 Income Tax Rate for Resident Corporate Taxpayers, a public listed company can
obtain a reduction of income tax rate by 5 lower from the highest income tax rate by fulfilling several requirements at least 40 of the total paid-up shares are listed and traded in the
Indonesia Stock Exchange and must be recorded in depository and settlement institutional, 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 183 one hundred and eighty three calender days in a period of 1 one fiscal year.
Tax payer should include the certificate from Securities Administration Agency in the annual Corporate Income Tax return by attaching form X.H.1-6 as regulated in Bapepam-LK Regulation
No X.H.1 for each respective fiscal year.