REVENUES 2017 FS English 2017final

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2017 and For the Six Months Period Then Ended unaudited Figures in tables are expressed in billions of Rupiah, unless otherwise stated 66

26. TAXATION

a. Claims for tax refund June 30, 2017 December 31, 2016 The Company Value Added Tax “VAT” Note 26e.i 1,428 335 Corporate income tax 578 473 Subsidiaries Corporate income tax 329 66 VAT 234 1,146 Total claims for tax refund 2,569 2,020 Current portion 267 592 Non-current portion 2,302 1,428 b. Prepaid taxes June 30, 2017 December 31, 2016 The Company Income tax Article 19 - Revaluation of fixed assets Note 26f 538 538 VAT 91 1,075 Subsidiaries Corporate income tax 103 62 VAT 2,743 1,639 Income tax Article 22 - Withholding tax on goods delivery and imports 3 - Article 23 - Withholding tax on services 153 52 Total prepaid taxes 3,631 3,366 Current portion 3,248 2,138 Non-current portion 383 1,228 c. Taxes payable June 30, 2017 December 31, 2016 The Company Income taxes Article 4 2 - Final tax 23 29 Article 21 - Individual income tax 225 141 Article 22 - Withholding tax on goods delivery and imports 2 2 Article 23 - Withholding tax on services 21 42 Article 25 - Installment of corporate income tax 1 - Article 26 - Withholding tax on non-resident income 7 136 VAT VAT as Tax Collector 234 297 513 647 PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2017 and For the Six Months Period Then Ended unaudited Figures in tables are expressed in billions of Rupiah, unless otherwise stated 67

26. TAXATION continued

c. Taxes payable continued June 30, 2017 December 31, 2016 Subsidiaries Income taxes Article 4 2 - Final tax 61 63 Article 21 - Individual income tax 103 121 Article 22 - Withholding tax on goods delivery and imports 2 2 Article 23 - Withholding tax on services 95 93 Article 25 - Installment of corporate income tax 804 136 Article 26 - Withholding tax on non-resident income 10 16 Article 29 - Corporate income tax 1,066 1,100 VAT 663 776 2,804 2,307 Total 3,317 2,954 d. The components of income tax expense benefit are as follows: 2017 2016 Current The Company 116 215 Subsidiaries 5,415 4,657 5,531 4,872 Deferred The Company 235 8 Subsidiaries 6 45 229 37 Net income tax expense 5,760 4,835 The reconciliation between the income tax expense calculated by applying the applicable tax rate of 20 to the profit before income tax less income subject to final tax, and the net income tax expense as shown in the consolidated statements of profit or loss and other comprehensive income is as follows: 2017 2016 Profit before income tax 23,255 19,498 Less: income subject to final tax - net 342 1,027 23,597 18,471 Income tax expense calculated at the Company’s applicable statutory tax rate of 20 4,719 3,694 Difference in applicable statutory tax rate for subsidiaries 1,101 901 Non-deductible expenses 91 159 Final income tax expense 33 139 Deffered tax asset that can not be utilized -net 12 - Others 14 58 Net income tax expense - net 5,760 4,835