NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2012 AND 2011
Expressed in millions of Rupiah, unless otherwise stated
Appendix 5104 32. TAXATION continued
d. Tax Expense - Current continued
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:
2012 2011
Consolidated income before tax expense and minority interest 20,504,268
16,512,035 Tax calculated at applicable tax rates:
4,524,118 3,178,770
Tax effect of: Bank Mandiri
- Income not subject to tax and final tax
166,121 109,464
- Expense not deductible for tax purposes
304,083 444,207
137,962 334,743
Subsidiaries 201,430
302,637 Total tax effect
63,468 637,380
Income tax expense 4,460,650
3,816,150
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.
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. DEI13-0094 dated 3 January 2013 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 Bapepam and LK, it confirmed that the shares ownership of Bank Mandiri during 2012 Letter No. DEI12-0121
dated 9 January 2012 from PT Datindo Entrycom to the Bappepam-LK for year 2011, has fulfilled all requirements to obtain a tax rate reduction as mentioned above. In accordance with
PMK 238, Bapepam and LK reports the fulfilment of these requirements by Bank Mandiri to the Tax Office. Therefore the Bank’s Corporate Income Tax for fiscal year 2012 and 2011 is
calculated using the tax rate at 20.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2012 AND 2011
Expressed in millions of Rupiah, unless otherwise stated
Appendix 5105 32. TAXATION continued
e. Deferred tax assets - net
Deferred tax arises from temporary differences between book value based on commercial and tax calculation are as follows:
2012
Beginning balance
Credited charged to
consolidated statement of
comprehensive income
Charged to equity
Ending balance
Bank Mandiri Deferred tax assets:
Loans write-off until 2008 1,883,339
175,688 -
1,707,651 Allowance for impairment loan losses
609,577 240,950
- 850,527
Allowance for impairment losses on financial assets other than loans
304,215 7,845
- 296,370
Provision for post-employment benefit expense, provision for bonuses, leave and holiday THR entitlements
539,979 180,893
- 720,872
Allowance for estimated losses arising from legal cases 114,886
2,390 -
112,496 Estimated losses on commitments and contingencies
46,333 9,110
- 37,223
Allowance for possible losses on abandoned properties 33,940
- -
33,940 Allowance for possible losses on repossessed assets
2,292 298
- 1,994
Accumulated losses arising from difference in net realisable value of abandoned properties
2,069 -
- 2,069
Accumulated losses arising from difference in net realisable value of repossessed assets
1,973 4
- 1,969
Unrealised losses on increasedecrease in fair value of marketable securities and
Government Bonds available for sale 131,084
- 29,926
101,158 Deferred tax assets
3,669,687 226,508
29,926 3,866,269
Deferred tax liabilities: Unrealised gain on BOT transactions
- 54,590
- 54,590
Unrealised gainlosses on increasedecrease in fair value of marketable securities and
Government Bonds fair value through profit or loss 2,520
1,418 -
1,102 Net book value of fixed assets
18,540 14,926
- 33,466
Deferred tax assets - Bank Mandiri only 3,648,627
158,410 29,926
3,777,111
Net deferred tax assets - Subsidiaries 151,785
189,502 Total consolidated deferred tax assets - net
3,800,412 3,966,613
