PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2013 AND 2012
Expressed in millions of Rupiah, unless otherwise stated
Appendix 5103 33. TAXATION continued
d. Tax Expense - Current continued
The tax on Bank Mandiri an d 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:
2013 2012
Consolidated income before tax expense and minority interest 24,061,837
20,504,268 Tax calculated at applicable tax rates:
5,186,425 4,524,118
Tax effect of: Bank Mandiri
- Income not subject to tax and final tax
150,620 166,121
- Expense not deductible for tax purposes
274,824 304,083
124,204 137,962
Subsidiaries 78,726
201,430 Total tax effect
45,478 63,468
Income tax expense 5,231,903
4,460,650
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 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 from the highest income tax rate by fulfilling several requirements, which include 40 of total
issued and fully paid in capital shares traded in Indonesia Stock Exchange and must be recorded in depository and settlement institutional 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 183 one hundred and eighty three calender days in a
period of 1 one fiscal year.
Based on No.DEI2014-0111 Certificate dated 3 January 2014 2012: Certificate No. DEI2013- 0098 dated 3 January 2013 regarding Monthly Stock Ownership of Publicly Listed Companies
Report and the Recapitulation No.X.H.I-2 from PT Datindo Entrycom Securities Administration Agency to Bank Mandiri, it was stated the Bank has met the requirements to obtain the income
tax rate reduction above. In accordance with PMK.238, Financial Service Authority, formerly Bapepam-LK will submit information on the above requirement fulfillment by the Bank to the
authorised Tax Office. Until the date of the consolidated financial statements, the implementation guidance of GR No.77 Year 2013 which will be formalised into Minister of Finance Regulation
PMK has not been issued. As of now, the effective date of GR No.77 Year 2013 is still in discussion therefore the confirmation of the fulfilment of GR No.77 Year 2013 will be clarified by
PMK which will be issued. However Management believes that Bank Mandiri has met all requirements to obtain income tax reduction for 2013 fiscal year. Therefore, the Banks corporate
income tax for the year ended 31 December 2013 and 2012 are calculated using the tax rate of 20.
PT BANK MANDIRI PERSERO Tbk. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2013 AND 2012
Expressed in millions of Rupiah, unless otherwise stated
Appendix 5104 33. 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:
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