PERSONNEL EXPENSES AR TELKOM 2015 ENG.

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2015 and for the Year Then Ended Figures in tables are expressed in billions of Rupiah, unless otherwise stated 84

30. 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, 2015 and 2014 is as follows: 2014 2015 As restated Profit before income tax 31,342 28,613 Add back consolidation eliminations 15,553 13,110 Consolidated profit before income tax and eliminations 46,895 41,723 Less: profit before income tax of the subsidiaries 31,007 26,309 Profit before income tax attributable to the Company 15,888 15,414 Less: income subject to final tax 591 622 15,297 14,792 Temporary differences: Provision for onerous contracts 547 - Finance leases 231 64 Provision for personnel expenses 127 342 Valuation of fair value of put option and long-term investment 117 8 Net periodic pension and other post-retirement benefits costs 12 370 Provision for impairment of assets - 805 Depreciation and gain on sale of property and equipment 948 574 Provision for incentives to subscribers PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2015 and for the Year Then Ended Figures in tables are expressed in billions of Rupiah, unless otherwise stated 85

30. 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. 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 the purpose of calculating income tax expense and liabilities for the financial reporting years ended December 31, 2015 and 2014, the Company has reduced the applicable tax rate by 5. The Company applied the tax rate of 20 for the years ended December 31, 2014 and 2015. The subsidiaries applied a tax rate of 25 for the years ended December 31, 2014 and 2015. e. Tax assessment i The Company In November 2013, the Company received tax underpayment assesment letters