OPERATION, MAINTENANCE AND TELECOMMUNICATION SERVICE EXPENSES

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2016 and For the Nine-Month Period Then Ended unaudited Figures in tables are expressed in billions of rupiah, unless otherwise stated 68

27. TAXATION continued

b. Prepaid taxes September 30, 2016 December 31, 2015 The Company Income tax 538 750 VAT 357 350 895 1,100 Subsidiaries Corporate income tax 85 16 VAT 2,159 1,536 Income tax Article 22 - Withholding tax on goods delivery and imports 39 - Article 23 - Withholding tax on services 1 20 Article 24 - Foreign Tax Credit 2 - 2,286 1,572 3,181 2,672 c. Taxes payable September 30, 2016 December 31, 2015 The Company Income taxes Article 4 2 - Final tax 26 37 Article 21 - Individual income tax 45 51 Article 22 - Withholding tax on goods delivery and imports 1 2 Article 23 - Withholding tax on services 27 23 Article 25 - Installment of corporate income tax 35 17 Article 26 - Withholding tax on non-resident income 1 2 Article 29 - Corporate income tax 212 - VAT VAT – Tax collector 219 396 566 528 Subsidiaries Income taxes Article 4 2 - Final tax 55 54 Article 21 - Individual income tax 133 113 Article 22 - Withholding tax on goods delivery and imports 2 1 Article 23 - Withholding tax on services 101 102 Article 25 - Installment of corporate income tax 647 237 Article 26 - Withholding tax on non-resident income 6 9 Article 29 - Corporate income tax 1,877 1,548 VAT 541 681 3,362 2,745 3,928 3,273 PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2016 and For the Nine-Month Period Then Ended unaudited Figures in tables are expressed in billions of rupiah, unless otherwise stated 69

27. TAXATION continued

d. The components of income tax expense benefit are as follows: 2016 2015 Current The Company 548 128 Subsidiaries 7,532 6,029 8,080 6,157 Deferred The Company 269 6 Subsidiaries 363 168 632 174 Net income tax expense 7,448 5,983 The reconciliation between the income tax expense calculated by applying the applicable tax rate of 20 to the profit before income tax less income subject to final tax, and the net income tax expense as shown in the consolidated statements of profit or loss and other comprehensive income is as follows: 2016 2015 Profit before income tax 29,618 23,320 Less income subject to final tax 1,197 1,433 Net 28,421 21,887 Income tax expense calculated at the Company’s applicable statutory tax rate of 20 5,684 4,377 Difference in applicable statutory tax rate for subsidiaries 1,422 1,122 Non-deductible expenses 204 235 Final income tax expense 98 134 Others 40 115 Net income tax expense 7,448 5,983 The reconciliation between the profit before income tax and the estimated taxable income of the Company for the nine-month periods ended September 30, 2016 and 2015 is as follows: 2016 2015 Profit before income tax 29,618 23,320 Add back consolidation eliminations 16,347 11,462 Consolidated profit before income tax and eliminations 45,965 34,782 Less: profit before income tax of the subsidiaries 30,478 22,813 Profit before income tax attributable to the Company 15,487 11,969 Less: income subject to final tax 538 531 14,949 11,438