INTERCONNECTION AND TELECOMMUNICATIONS SERVICE CHARGES

PT XL AXIATA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2007, 2008 AND 2009; AND 31 MARCH 2009 AND 2010 Expressed in millions of Rupiah, unless otherwise stated Page 45

25. TAXATION continued

c. Corporate income tax expensesbenefit continued

2007 2008 2009 2009 2010 1 year 1 year 1 year 3 months 3 months Accumulated tax losses 127,316 113,075 543,228 543,228 - Tax loss adjustment 2005 8,442 - - - - Tax loss adjustment 2006 - 5,208 25,817 - - Tax loss adjustment 2007 - - 82,052 - - Tax loss adjustment 2008 - - 9,849 - - Taxable lossincome 113,075 543,228 36,469 1,645,538 694,988 Current tax expense - The Company - - 10,211 - 173,697 Less: Prepaid corporate tax 85,438 210,373 79,545 26,136 69,908 Overunder payment of corporate income tax 85,438 210,373 69,334 26,136 103,789 In accordance with Indonesian Taxation Law, corporate income tax is calculated for the Company and each of its subsidiaries in the understanding that they are separate legal entities consolidated financial statements are not permitted for computing corporate income tax. In September 2008, the Indonesian government issued a new income tax regulation which become effective commencing 1 January 2009. With this regulation, the corporate income tax rate reduced to a fixed rate of 28 in 2009 and 25 in 2010 onwards. On 31 December 2008 and 2009 the Company adjusted the deferred tax assets and liabilities to align with the changes in the corporate income tax rate. For fiscal year 2009, The Company will notify extension of Corporate Income Tax Return submission up to 30 June 2010 based on the prevailing regulation. In these consolidated financial statement, the amount of tax income for the period ended 31 March 2009 and 31 March 2010, and for the years ended 31 December 2009 are based on preliminary calculation. These amounts may differ from tax income reported in the Corporate Income Tax Return. There is no significant difference between the amount of tax incomeloss for the years ended 31 December 2007 and 2008 and the amount reported in the Corporate Income Tax Returns.

d. Deferred tax liabilities

31122006 Charged credited to consolidated statement of income Prior year adjustment charged to consolidated statement of income 31122007 Difference between commercial and fiscal depreciation and amortisation 422,347 298,956 - 721,303 Allowance for bad debt expense 25,445 10,257 - 35,702 Provision for salaries and employee benefits 11,553 26,395 - 37,948 Tax losses carried forward 38,196 1,740 2,532 33,924 347,153 264,044 2,532 613,729