TAXATION FS Telkom Q1 2011

PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued DECEMBER 31, 2010 AUDITED AND MARCH 31, 2011 UNAUDITED AND THREE MONTHS PERIOD ENDED MARCH 31, 2010 AND 2011 UNAUDITED Figures in tables are presented in millions of Rupiah, unless otherwise stated 84

38. TAXATION

continued f. Tax assessment continued ii Telkomsel continued As a result of assessment and Tax Court’s verdict, on January 28 and February 12, 2010, Telkomsel received the refund for overpayment of the 2008 Corporate Income Tax of Rp.439 billion and Rp.4.2 billion, respectively. On April 21, 2010, Tax Court notified Telkomsel that the Tax Authorities has filed an appeal to the SC on Tax Court’s verdict of cancellation of STP for underpayment of income tax article 25 for the period of December 2008. 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 2006 fiscal year totaling Rp.212 billion including penalty of Rp.69 billion. On December 23, 2010, Telkomsel filed an objection to the Tax Authorities for underpayments of withholding taxes and VAT amounting to Rp.116 billion including penalty of Rp.38 billion and recorded it as claim for tax refund. The accepted portions of Rp.50 billion was previously recognized and charged to 2008 consolidated statement of comprehensive income while the remaining portion of Rp.46 billion were charged to 2010 consolidated statement of comprehensive income. As of the issuance date of the consolidated financial statements, the objection is still in process. In October and November, 2010, Telkomsel received STPs for underpayment of income tax article 25 for 2010 fiscal year of Rp.229 billion including penalty of Rp.11 billion. The STPs were paid in November and December 2010. The principal payment of Rp.218 billion was considered as prepayment in calculating the 2010 corporate income tax which at the end resulted in an overpayment of Rp.600 billion. The overpayment and penalty are recognized as prepaid tax as of March 31, 2011. Through its letters in November 2010, Telkomsel requested the Tax Authorities to cancel the STPs. As of the issuance date of the consolidated financial statements, the cancellation request is still in process. PERUSAHAAN PERSEROAN PERSERO P.T. TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS continued DECEMBER 31, 2010 AUDITED AND MARCH 31, 2011 UNAUDITED AND THREE MONTHS PERIOD ENDED MARCH 31, 2010 AND 2011 UNAUDITED Figures in tables are presented in millions of Rupiah, unless otherwise stated 85

38. TAXATION