PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2016 and for the Year Then Ended
Figures in tables are expressed in billions of Rupiah, unless otherwise stated
69
26. 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 year ended December 31, 2016 and 2015 is as follows:
2016 2015
Profit before income tax 38,189
31,342 Add back consolidation eliminations
24,613 15,553
Consolidated profit before income tax and eliminations 62,802
46,895 Less: profit before income tax of the subsidiaries
40,166 31,007
Profit before income tax attributable to the Company 22,636
15,888 Less: income subject to final tax
670 591
21,966 15,297
Temporary differences: Provision for personnel expenses
560 127
Net periodic pension and other post-retirement
benefits costs 513
12 Valuation of fair value of put option and long-term
investment 172
117
Deferred installation fee 50
33 Provision for incentive to subscribers
’ migration -
209
Depreciation and gain on sale of property and equipment 1,880
948 Provision for impairment of assets
1,186 -
Provision for onerous contracts 547
547
Finance leases 337
231
Provision for impairment and trade receivables written-off 43
206
Other provisions 106
296
Net temporary differences 2,804
66 Permanent differences:
Tax penalties 640
29 Trade receivables written-off
590 -
Employee benefits 302
232 Net periodic post-retirement health care benefit costs
163 216
Donations 162
175
Equity in net income of associates and subsidiaries 19,445
15,590
Others 129
258
Net permanent differences 17,459
14,680 Taxable income of the Company
1,703 551
Current corporate income tax expense 340
110 Final income tax expense
331 91
Total current income tax expense of the Company 671
201 Current income tax expense of the subsidiaries
10,067 8,164
Total current income tax expense 10,738
8,365
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2016 and for the Year Then Ended
Figures in tables are expressed in billions of Rupiah, unless otherwise stated
70
26. TAXATION continued
d. The components of income tax expense benefit are as follows continued: Tax Law No. 362008 which is futher regulated in Government Regulation No. 812007 as amended
by Government Regulation No. 772013 and lastly by Government Regulation No. 562015 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 owns 40 or more of the total fully paid and traded shares, and such shares are owned by at least 300 parties,
with each party owning less than 5 of the total paid-up shares. These requirements must be met by a company for a period of 183 days in one tax year. The Company has met all of the required
criteria; therefore, for the purpose of calculating income tax expense and liabilities for the financial reporting the year ended December 31, 2016 and 2015, the Company has reduced the applicable
tax rate by 5.
The Company applied the tax rate of 20 for the year ended December 31, 2016 and 2015. The subsidiaries applied a tax rate of 25 for the year ended December 31, 2016 and 2015.
The company will submit the above corporate income tax computation in its income tax return “Surat Pemberitahuan Tahunan” or Annual Tax Return for fiscal year 2016 that will be reported to
the tax office based on prevailing regulations. The amount of corporate income tax for the year ended December 31, 2015 agreed with what was reported in the annual tax return.
e. Tax assessment i The Company
In November 2013, the Company received tax underpayment assesment letters “SKPKBs”
No. 000562070709313 to No. 000652070709313 dated November 15, 2013, for the underpayment of VAT for the period January to September and November 2007 amounting to
Rp142 billion. On January 20, 2014, the Company filed its objection to the Tax Authorities. The Company has received the rejection of its objection through The Directorate General of Taxation
“DGT” decision letters No. 2498 to 2504 and 2541 to 2543WPJ.192014 dated December 16 and 18, 2014, respectively. The Company accepted the assessment on the underpayment of
VAT amounting to Rp22 billion including penalty of Rp10 billion. The accepted portion was charged to the 2014 consolidated statements of profit or loss and other comprehensive income
and the portion of VAT Interconnection amounting to Rp120 billion including penalty Rp39 billion is recognized as claim for tax refund. The Company has filed an appeal to the rejection
of
the objection
on underpayment
of VAT
Interconnection No. Tel. 59KU000COP-100000002015 to No. Tel. 68KU000COP-100000002015 dated
March 12, 2015. As of the date of approval and authorization for the issuance of these consolidated financial statements, the appeal is still in process.
