PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF JUNE 30, 2013 UNAUDITED AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 AUDITED AND FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 UNAUDITED
Figures in tables are presented in billions of Rupiah, unless otherwise stated
74
31. TAXATION continued
e. continued The reconciliation between consolidated profit before income tax and the estimated taxable
income for six months period ended June 30, 2013 and 2012 is as follows:
2013 2012
Consolidated profit before income tax 13,557
12,004 Add back consolidation eliminations
5,852 5,065
Consolidated profit before income tax and eliminations 19,409
17,069 Less: profit before income tax of the subsidiaries
11,853 Profit before income tax attributable to the Company
7,556 6,857
Less: profit subject to final tax 204
190
7,352 6,667
Temporary differences: Depreciation and gain on sale of property
and equipment 271
128 Provision for impairment and
trade receivables written-off 159
116 Provision for personnel expenses
641 134
Net periodic pension and other post-retirement benefits costs
206 146
Provision for early retirement program 699
Deferred installation fee 20
39 Finance lease
22 14
Other provisions 25
85
Total temporary differences 1,039
84
Permanent differences: Net periodic post-retirement health care benefit costs
187 45
Employee benefits 90
85 Donations
103 96
Equity in net income of associates and subsidiaries 5,865
5,092 Others
338 209
Total permanent differences 5,147
4,657
Taxable income 1,116
2,094
Current corporate income tax expense 233
419 Final income tax expense
26
16
Total current income tax expense of the Company 259
435 Current income tax expense of the subsidiaries
2,928 2,795
Total current income tax expense 3,187
3,230
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF JUNE 30, 2013 UNAUDITED AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 AUDITED AND FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 UNAUDITED
Figures in tables are presented in billions of Rupiah, unless otherwise stated
75
31. TAXATION continued
e. continued The Tax Law No. 362008 stipulates a reduction of 5 from the top rate applicable to qualifying
listed companies, for those whose stocks are traded in the IDX which meet the prescribed criteria that the public own 40 or more of the total fully paid and traded stocks, and such stocks are
owned by at least 300 parties, with each party owning less than 5 of the total paid-up stocks. These requirements must be met by a company for a period of 6 months in one tax year. The
Company has met all of the required criteria, therefore, for purposes of calculating income tax expense and liabilities for the financial reporting periods for six months period ended June 30,
2013 and for the year ended December 31, 2012, the Company has reduced the applicable tax rate by 5.
The Company applied a tax rate of 20 for six months period ended June 30, 2013 and for the year ended December 31, 2012. The subsidiaries applied a tax rate of 25 for six months period
ended June 30, 2013 and for the year ended December 31, 2012.
f. Tax assessment
i The Company The Directorate General of Tax DGT is assessing the Company s withholding income
taxes for fiscal year 2008 and as of the issuance date of the consolidated financial statements, the assessment is still in process.
ii Telkomsel On February 25, 2009, the Tax Authorities filed a judicial review request to the Indonesian
Supreme Court SC for the Tax Court s acceptance of Telkomsel s appeal for a refund of Rp115 billion withholding taxes covering the fiscal year 2002. On April 3, 2009, Telkomsel
filed a contra-appeal to the SC. Based on its verdict which was received in November 2012, the SC decided to reject the request of the Tax Authorities. The SC verdict is legally binding
in favor of Telkomsel.
On August 10, 2010, the Tax Authorities filed a judicial review request to the SC on the Tax Court s verdict. On September 24, 2010, Telkomsel filed a contra-appeal to the SC. As of the
issuance date of the consolidated financial statements, the judicial review is still in process.
On April 21, 2010, the Tax Court notified Telkomsel that the Tax Authorities have filed an appeal to the SC on the Tax Court s verdict to cancel the Tax Collection Letter STP for the
underpayment of income tax Article 25 for the period December 2008 of Rp429 billion including a penalty of Rp8 billion. In May 2010, Telkomsel filed a contra-appeal to the SC.
As of the issuance date of the consolidated financial statements, the appeal is still in process.
In 2010, Telkomsel was assessed for underpayments of corporate income tax, withholding taxes and VAT, for the fiscal year 2006 totalling Rp212 billion including penalty of
Rp69 billion. In November 2010, Telkomsel paid the assessments and in December 2010, Telkomsel filed an objection to the DGT for the withholding tax and VAT assessments
amounting to Rp116 billion including a penalty of Rp38 billion and recorded the payments as a claim for tax refund. A portion of the accepted assessment by the Company in the
amount of Rp50 billion had been previously charged to the 2008 consolidated statement of comprehensive income while the remaining portion of Rp46 billion was charged to the 2010
consolidated statement of comprehensive income. Subsequently, in September 2011, the Tax Authorities rejected Telkomsel s objection. In December 2011, Telkomsel filed an appeal
to the Tax Court. As of the issuance date of the consolidated financial statements, the appeal is still in process.
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF JUNE 30, 2013 UNAUDITED AND FOR SIX MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 AUDITED AND FOR SIX MONTHS PERIOD ENDED JUNE 30, 2012 UNAUDITED
Figures in tables are presented in billions of Rupiah, unless otherwise stated
76
31. TAXATION continued
