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
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
80
31. TAXATION continued
d. The components of income tax expense benefit are as follows: continued Tax Law No. 362008 which futher regulated in Government Regulation No. 772013 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 purposes of calculating income tax expense and liabilities for the financial
reporting periods of September 30, 2014 and December 31, 2013, the Company has reduced the applicable tax rate by 5.
The Company applied a tax rate of 20 for the nine months period ended September 30, 2014 and for the year ended December 31, 2013. The subsidiaries applied a tax rate of 25 for the
nine months period ended September 30, 2014 and for the year ended December 31, 2013. e. Tax assessment
i The Company The Directorate General of Tax “DGT” assessed the Company forValue Added Tax,
withholding income taxes and corporate income tax for fiscal year 2011. Tax assessment for the fiscal year 2008 has been completed with the issuance ofTax Assessment Letter SKP
No. SPHP-2WPJ.19KP.032014 regarding notice of workup with no correction for Income Tax Article 21222326 and 4 2.
In November 2013, the Company received SKPKBs No. 000562070709313 to No. 000652070709313 dated November 15, 2013, for the underpayment of Value Added
Tax VAT for the fiscal year January - September and November 2007 of Rp142 billion. On January 2014, the Company filed an objection to the Tax Authorities regarding the
underpayment of VAT. As of the issuance date of the consolidated financial statements, the Tax Authorities have not yet issued their decision on the objection.
As of January 20, 2014, the Company submitted the objection letter for SKPKB of underpayment of VAT year 2007 which was received by the Company on November 2013.
ii Telkomsel On April 21, 2010, the Tax Authorities filed a judicial review request to the SC for the Tax
Court’s acceptance of Telkomsel’s request to cancel the Tax Collection Letter STP for the underpayment of December 2008 Income Tax Article 25 amounting to Rp429 billion including
a penalty of Rp8 billion. In May 2010, Telkomsel field a contra-appeal to the SC. As of the date of approval and authorization for issuance of these consolidated financial statements, the
judicial review is still in process. On August 10, 2010, the Tax Authorities filed a judicial review request to the SC for the Tax
Court’s acceptance of Telkomsel’s appeal on 2004 and 2005 VAT totaling Rp215 billion. In September 2010, Telkomsel filed a contra-appeal to the SC. Based on its verdict which was
received in june 2014, the SC decided to reject the request from the tax authorities. The SC verdict is legally binding in favour of Telkomsel.
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
81
31. TAXATION continued
