OPERATIONS, MAINTENANCE AND TELECOMMUNICATION SERVICE EXPENSES 2014

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2014 and for the Nine months Period Then Ended unaudited Figures in tables are expressed in billions of rupiah, unless otherwise stated 78

31. TAXATION continued

d. The components of income tax expense benefit are as follows: 2014 2013 Current The Company 708 607 Subsidiaries 4,797 4,714 5,505 5,321 Deferred The Company 23 63 Subsidiaries 47 138 70 201 5,435 5,120 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 statement of comprehensive income is as follows: 2014 2013 Profit before income tax 21,715 20,748 Less income subject to final tax 1,246 618 20,469 20,130 Tax calculated at the Company’s applicable statutory tax rate of 20 4,094 4,026 Difference in applicable statutory tax rate for subsidiaries 951 897 Non-deductible expenses 312 298 Final income tax expenses 72 45 Others 6 146 Net income tax expense 5,435 5,120 PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2014 and for the Nine months Period Then Ended unaudited Figures in tables are expressed in billions of rupiah, unless otherwise stated 79

31. TAXATION continued

d. The components of income tax expense benefit are as follows: continued The reconciliation between the profit before income tax and the estimated taxable income of the Company for the nine months period ended September 30, 2014 and 2013 is as follows: 2014 2013 Profit before income tax 21,715 20,750 Add back consolidation eliminations 9,487 8,987 Consolidated profit before income tax and eliminations 31,202 29,737 Less profit before income tax of the subsidiaries 18,828 18,182 Profit before income tax attributable to the Company 12,374 11,555 Less income subject to final tax 507 300 11,867 11,255 Temporary differences: Provision for impairment and trade receivables written-off 270 46 Provision for personnel expenses benefits costs 350 490 Net periodic pension and other post-retirement 210 315 Provision for impairment of assets 190 - Deferred installation fee 25 Payment of provision for early retirement program 699 Depreciation and gain on sale of property and equipment 183 25 Finance lease 8 322 Other provisions 2 187 Net temporary differences 131 411 Permanent differences: Donations 167 161 Employee benefits 161 148 Net periodic post-retirement health care benefit costs 55 281 Equity in net income of associates and subsidiaries 9,496 9,000 Others 297 387 Net permanent differences 8,816 8,023 Taxable income of the Company 3,182 2,821 Current corporate income tax expense 636 563 Final income tax expense 72 44 Total current income tax expense of the Company 708 607 Current income tax expense of the subsidiaries 4,797 4,714 Total current income tax expense 5,505 5,321