PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2003, April 30, 2003 and December 31, 2002 Expressed in millions of Rupiah, unless otherwise stated
98
27. TAXATION continued c. Corporate income tax expense - current continued
Tax Decisions and Tax Assessment continued On October 29, 2003, Bank Mandiri received Tax Assessment Letters SKPKB dated October 24,
2003 in relation to the tax audit of PT Bank Dagang Negara Persero for the period from January 1, 1999 through July 31, 1999. The letters stated that PT Bank Dagang Negara Persero had liabilities
totaling Rp717,229 for the following taxes: employee income tax-article 21 of Rp172,378, withholding tax-article 23 of Rp301, VAT of Rp1,501, and tax-article 4 2 final and tax on rental of land and
buildings of Rp542,846, and Tax Collection Letter STP on VAT of Rp203. The Bank has sent Tax Objection Letters to the tax office Note 62b.
On December 29, 2003, the Bank received Tax Collection Enforcement Letter Surat Paksa No. 231WPJ.07KP.01082003 regarding the above referenced tax assessment. The Bank has sent a
Cancellation Request Letter Surat Gugatan to the tax court Note 62b. Tax Losses Carried Forward
Under current Indonesian tax regulations, tax losses may be carried forward and utilized to offset taxable income for up to 5 years after the year in which the tax loss was incurred.
Movements of tax losses carried forward from January 1, 2000 to December 31, 2003 are as follows:
Year of Amount
Expiry Balance as of January 1, 2000 tax loss in 1999
26,991,916 2004
Correction of 1999 tax losses carried forward by the tax office 5,098,190
Utilization of 1999 tax losses carried forward in 2000 12,729,623
Balance as of December 31, 2000 9,164,103
2004 Utilization of tax losses carried forward in 2001
4,404,391 Balance of tax losses carried forward as of December 31, 2001
4,759,712 2004
Additional tax losses carried forward in 2002 6,370,979
2007 Balance of tax losses carried forward as of December 31, 2002
11,130,691 Balance of tax losses carried forward from the merged banks,
transferred to Bank Mandiri 31,944,418
Utilization of tax losses carried forward to offset premises and equipment revaluation
increment 3,875,351
Tax corrections in 2003: 1999 tax losses
13,659,210 2000 taxable income
15,506,709 2001 taxable income
2,342,573 2002 tax losses
7,659,860 Utilization of tax losses carried forward in 2003
31,406 Balance of tax losses carried forward as of December 31, 2003
Nil
PT BANK MANDIRI PERSERO TBK. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2003, April 30, 2003 and December 31, 2002 Expressed in millions of Rupiah, unless otherwise stated
99
27. TAXATION continued d. Corporate income tax expense - deferred
The reconciliations between estimated income tax expense, calculated using applicable tax rates based on commercial profit before estimated income tax, and estimated income tax as reported in the
statements of profit and loss for the eight-month period ended December 31, 2003, the four-month period ended April 30, 2003 and the year ended December 31, 2002 are as follows:
For the
For the 8-month For the 4-month
year ended period ended
period ended December 31,
December 31, 2003 April 30, 2003
2002
Consolidated profit before corporate income tax expense and minority interests
5,134,607 1,896,917
5,809,970 Less: Income before corporate income tax expense of Subsidiaries
5,692 2,493
36,897 Profit before estimated corporate income tax and minority
interests - Bank Mandiri only 5,128,915
1,894,424 5,773,073
Estimated income tax expense at standard statutory rates 1,538,657
568,327 1,731,922
Tax effect of permanent differences: Non-deductible expensesnon-taxable income
107,938 15,584
42,362 Non-deductible write-off of loans non-taxable
adjustment of provision for loan losses 299,082
- 1,887,876
Non-deductible provisionnon-taxable adjustment on provision for losses on earning assets other than loans
50,108 10,187
54,356 Non-deductible provisionnon-taxable adjustment of provision
for losses on commitments and contingencies 11,577
30,625 127,117
Others 2,617
6,191 63,945
371,106 31,419
1,812,710 Corporate income tax expense before benefit of utilizing
tax losses - Bank Mandiri only 1,909,763
536,908 80,788
Benefit of utilizing tax losses - Bank Mandiri only 9,422
- 2,268,272
Corporate income tax expense - Bank Mandiri only 1,900,341
536,908 2,187,484
Corporate income tax expense - Subsidiaries 5,457
2,752 36,269
Corporate income tax expense - consolidated 1,905,798
539,660 2,223,753
Less current corporate income tax expense - consolidated
1,319,937 868,940
824 Deferred corporate income tax expensebenefit - consolidated
585,861 329,280
2,222,929
e. Deferred tax assets The tax effects from significant temporary differences between commercial and tax bases are as follows:
December 31, April 30,
December 31, 2003
2003 2002
Bank Mandiri Deferred tax assets:
Allowance for estimated losses on commitments and contingencies
171,447 446,489
363,326 Allowance for possible loan losses
1,006,096 1,267,171
1,254,966 Allowance for possible losses on
earning assets other than loans 661,192
624,627 642,631
Allowance for possible losses arising from legal cases
294,147 428,627
477,455 Provision for personnel expenses
210,057 380,316
318,359 2,342,939
3,147,230 3,056,737
