TAXATION continued d. Tax expense - current continued

PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2016 and for the year then ended Expressed in millions of Rupiah, unless otherwise stated 149

33. TAXATION continued

g. Tax assessment letters continued Fiscal year 2013 continued Management disagree with the Tax Underpayment Assessment Letter and has submitted an objection letter to Tax Office dated March 10, 2015. Bank has paid all the tax underpayment amount and recorded it as prepaid tax on December 31, 2016 and 2015. On March 7, 2016 the Tax Office has issued an objection letter rejecting the Bank’s objection. The Bank has submitted an appeal over the objection letter issued to Tax Court on June 2, 2016. Until the date of this consolidated financial statement the appeal is still in progress. Fiscal year 2010 According to the verification result by Tax Office on December 6, 2012, the Bank received Tax Underpayment Assessment Letters SKPKB which stated underpayments of corporate income tax related with loan write-offs and Value Added Tax VAT and Tax Collection Letter penalties STP for fiscal year 2010 totalled to Rp1,108,071. Management disagree with the Tax Underpayment Assessment letter result and has submitted an objection letter to Tax Office dated March 4, 2013. The Bank has paid all the tax under payment and recorded it as prepaid tax as of December 31, 2016 and 2015. On December 2013, the Tax Office has issued a decision letter to the Banks objection letters on VAT above and partially accepted the Banks objection, therefore the Tax office refunded a portion of prepaid tax related to VAT. The Bank disagreed with the above decision letter and has proposed an appeal for on the above decision letter to the Tax Court in March 2014. On February 21, 2014, Tax Office has issued a decision letter to the Banks objection letters on tax underpayment on corporate income tax and Tax Office rejected the objection. The Bank has filed an appeal against the objection decision letter to the Tax Court on May 19, 2014. On April and May 2016, the Tax Court has uttered their decision to approve majority of the appeal submitted on the letter of objection on VAT and reject the appeal submitted on the letter of objection on income tax. The Bank disagrees with the decision and has requested for judicial review from the Supreme Court of the Republic of Indonesia on August 15, 2016. Until the date of this consolidated financial statement the judicial review is still in progress.

h. Tax collection letter Fiscal year 2014

Based on the assessment result which was done by Tax Office on December 29, 2015, Tax Office issued Tax Collection Letter STP which stated underpayment of corporate tax expense for 2014 fiscal year of Rp1,459,120 and penalties of Rp233,459. Management disagree with the STP and Bank has submitted an application letter for STP cancellation to Tax Office on December 31, 2015. Bank has paid all the tax underpayment of Rp1,459,120 and recorded it as prepaid tax. Based on the Decree of the Director General of Taxation No. KEP- 00250NKEBWPJ.192016 dated February 24, 2016, the Tax Office has granted all Banks’s requests and cancelled the STP. On March 15, 2016, the Bank has proposed for compensation on tax refunds amounting to Rp1,459,120. On March 21, 2016, the Tax Office has granted a request for compensation submitted by the Bank through Decree Refund Excess Tax Payment SKPKPP No. KEP-00044.PPHWPJ.19 KP.04032016 and Excess Tax Payment Order SPMKP No. 80158 093-0156-2016 for STP payment of VAT tax year 2010 of Rp3,248, payment of income tax Article 29 amounted to Rp855,872 and payment of income tax Article 25 in 2016 amounted to Rp600,000. PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2016 and for the year then ended Expressed in millions of Rupiah, unless otherwise stated 150

34. EMPLOYEE BENEFIT LIABILITIES December 31, December 31,

2016 2015 Rupiah Provision for post-employment benefit Note 50 2,943,664 2,411,613 Provisions for bonuses, leave and holiday entitlements 3,819,404 3,365,464 6,763,068 5,777,077 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 using actuarial calculation. 35. OTHER LIABILITIES December 31, December 31, 2016 2015 Rupiah: Liability to policy holders 3,840,894 3,486,140 Liability related to ATM and credit card transaction 1,394,196 966,227 Payable to customers 1,350,344 926,371 Guarantee deposits 851,298 1,053,344 Deferred income directly attributable 627,487 517,242 Liabilities related to unit-link 351,903 596,316 Deferred income not directly attributable 378,865 356,577 Customers transfer transaction 73,545 124,431 Payable from purchase of marketable securities 20,721 42,194 Others 3,828,689 3,442,846 Total 12,717,942 11,511,688 Foreign currencies: Other liabilities related to UPAS transactions 948,536 743,551 Guarantee deposits 690,140 906,797 Customers transfer transaction 485,451 64,301 Deferred income not directly attributable 314,444 321,721 Deferred income directly attributable 2,274 3,761 Others 651,249 637,593 Total Note 61B.v 3,092,094 2,677,724 15,810,036 14,189,412 Liabilities to policyholders consist of liabilities of the Subsidiaries AXA Mandiri Financial Services, Mandiri AXA General Insurance and PT Asuransi Jiwa Indonesia InHealth as follows: December 31, December 31, 2016 2015 Future policy benefits from non unit-link products 2,053,916 1,705,778 Unearned premiums 1,211,875 1,188,453 Estimated claim liabilities 491,360 502,585 Claim payables 83,743 89,324 3,840,894 3,486,140