2011 Annual Report - BDO

The Bank is subject to MCIT which is computed at 2% of gross income, as defined under taxregulations. In 2011 and 2010, the Bank paid MCIT on its RBU since the MCIT was higherthan the RCIT.The amounts of NOLCO and MCIT as of the end of 2011 and 2010 for which the relateddeferred tax assets have not been recognized are shown below.2011 2010Amount Tax ffect E Amount Tax ffect EMCIT P 17,218,117 P 17,218,117 P 20,023,690 P 20,023,690NOLCO - - 479,960,407 143,988,122P 17,218,117 P 17,218,117 P 499,984,097 P 164,011,812The composition of and movements in the Bank’s NOLCO follow:Applied Applied orin Expired in Remaining ValidYear Amount Prior Years Current Year Balance Until2011 P 234,365,678 P - P - P 234,365,678 20142008 563,902,586 54,252,669 509,649,917 - 2011P 798,268,264 P 54,252,669 P 509,649,917 P 234,365,678The composition of and movements in the Bank’s MCIT follow:Applied Applied orin Expired in Remaining ValidYear Amount Prior Years Current Year Balance Until2011 P 1,184,416 P - P - P 1,184,416 20142010 7,437,308 - - 7,437,308 20132009 8,596,393 - - 8,596,393 2012P 17,218,117 P - P - P 17,218,11721.02 Supplemental Information Required By the Bureau of Internal RevenueOn December 9, 2011, the Bureau of Internal Revenue (BIR) issued RR 19-2011 whichprescribes the new form that will be used for income tax filing covering and starting withperiods ending December 31, 2011 and onwards. This recent RR requires schedules of taxablerevenues and other non-operating income, costs of sales and services, and itemized deductions,to be disclosed in the notes to financial statements. The amounts of taxable revenues andincome, and deductible costs and expenses are presented separately from the basic financialstatements and are based on relevant tax regulations issued by the BIR, hence, these may notbe the same as the amounts reflected in the 2011 statement of income.www.bdo.com.ph 105