Tax Expense - Current continued

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 5107 33. TAXATION continued

e. Deferred tax assets - net continued

2013 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 1,707,651 221,648 - 1,486,003 Allowance for impairment loan losses 850,527 69,206 - 919,733 Allowance for impairment losses on financial assets other than loans 296,370 83,422 - 379,792 Provision for post-employment benefit expense, provision for bonuses, leave and holiday THR entitlements 720,872 143,599 - 864,471 Allowance for estimated losses arising from legal cases 112,496 13,282 - 125,778 Estimated losses on commitments and contingencies 37,223 2,339 - 39,562 Allowance for possible losses on abandoned properties 33,940 3,911 - 30,029 Allowance for possible losses on repossessed assets 1,994 - - 1,994 Accumulated losses arising from difference in net realisable value of abandoned properties 2,069 1,880 - 189 Accumulated losses arising from difference in net realisable value of repossessed assets 1,969 - - 1,969 Unrealised losses on increasedecrease in fair value of marketable securities and Government Bonds available for sale 101,158 - 246,370 347,528 Deferred tax assets 3,866,269 84,409 246,370 4,197,048 Deferred tax liabilities: Unrealised gain on BOT transactions 54,590 3,119 - 57,709 Unrealised gainlosses on increasedecrease in fair value of marketable securities and Government Bonds fair value through profit or loss 1,102 1,210 - 108 Net book value of fixed assets 33,466 12,215 - 45,681 Deferred tax assets - Bank Mandiri only 3,777,111 70,285 246,370 4,093,766 Net deferred tax assets - Subsidiaries 189,502 228,732 Total consolidated deferred tax assets - net 3,966,613 4,322,498 Deferred tax assets are calculated using applicable tax rate or substantially enacted tax rate at consolidated statement of financial position dates. Management believes that it is possible that future taxable income will be available against the temporary difference, which results in deferred tax assets, can be utilised.

f. Tax assessment letters

Fiscal Year 2013 Based on verification process done by Tax office, on 16 December 2014, Tax Office issued Tax Underpayment Assessment Letter SKPKB which stated underpayment of corporate tax expense in relation to the use of tax rate for 2013 fiscal year of Rp1,313,347 including penalties. Management disagree with the Tax Underpayment Assessment Letter and will submit an objection letter to Tax Office. Bank has paid all the tax underpayment amount and recorded it as prepaid tax on 31 December 2014. Fiscal Year 2010 Based on tax audit result, on 6 December 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 including penalties. 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 5108 33. TAXATION continued

f. Tax assessment letters continued

Fiscal Year 2010 continued Management disagree with the Tax Underpayment Assessment letter result and on 4 March 2013, Bank has submitted an objection letter to the tax office. The Bank has paid all the tax underpayment which recorded as prepaid tax as at 31 December 2014 and 2013. On December 2013, the Tax Office issued a decision letter to the Bank’s objection letters on VAT above and partially accepted the Bank’s objection, therefore the Tax office refunded a portion of prepaid tax related to value added tax. The Bank disagreed with the above decision letter and has submitted an appeal for on the above decision letter to the Tax Court in March 2014. Until the date of this consolidated financial statements, the tax court is still on progress. On 21 February 2014, Tax Office issued a decision letter to the Bank’s 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 19 May 2014. Until the date of this consolidated financial statements, the tax court is still on progress.

34. EMPLOYEE BENEFIT LIABILITIES

2014 2013 Rupiah - Provision for post-employment benefit Note 50 2,234,193 1,965,656 - Provisions for bonuses, leave and holiday entitlements 2,946,967 2,619,413 5,181,160 4,585,069 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

2014 2013 Rupiah: Liability to policyholders 3,144,685 1,955,475 Payable to customers 2,018,396 1,271,409 Non controlling interest from Subsidiary’s mutual fund consolidation 1,152,424 857,009 Liability related to ATM and credit card transaction 966,018 1,001,071 Guarantee deposits 737,225 744,712 Deferred income directly attributable 501,082 555,001 Deferred income not directly attributable 242,143 181,831 Customers transfer transaction 57,367 138,046 Payable from purchase of marketable securities 13,201 726 Others 4,320,549 4,624,750 Total Rupiah 13,153,090 11,330,030 Foreign currencies: Guarantee deposits 1,178,359 1,357,207 Customers transfer transaction 555,859 535,090 Deferred income not directly attributable 422,854 447,467 Other liabilities related to UPAS transactions 796,728 283,127 Deferred income directly attributable 1,936 5,813 Others 261,860 207,480 Total foreign currencies Note 61B.v 3,217,596 2,836,184 16,370,686 14,166,214 Liabilities to policyholders consists of Subsidiaries’ AXA Mandiri Financial Services and Mandiri AXA General Insurance and PT Asuransi Jiwa InHealth Indonesia liability for future policy benefits for non unit-linked policyholders, claim payables, unearned premium income and estimated claim liabilities, amounting to Rp1,724,888, Rp93,824, Rp954,692 and Rp371,251 as at 31 December 2014 and amounting to Rp1,368,306, Rp35,394, Rp399,103 and Rp152,672 as at 31 December 2013.