PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2013 UNAUDITED AND FOR NINE MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 AUDITED AND FOR NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2012 UNAUDITED
Figures in tables are presented in billions of Rupiah, unless otherwise stated
75
31. TAXATION continued
e. continued The reconciliation between consolidated profit before income tax and the estimated taxable
income for nine months period ended September 30, 2013 and 2012 is as follows:
2013 2012
Consolidated profit before income tax 20,750
18,820 Add back consolidation eliminations
8,987 7,993
Consolidated profit before income tax and eliminations 29,737
26,813 Less: profit before income tax of the subsidiaries
18,182 16,162
Profit before income tax attributable to the Company 11,555
10,651 Less: profit subject to final tax
300 262
11,255 10,389
Temporary differences: Depreciation and gain on sale of property
and equipment 25
33 Amortization of intangible assets and land rights
- 7
Provision for impairment and trade receivables written-off
46 22
Provision for personnel expenses 490
- Net periodic pension and other post-retirement
benefits costs 315
226 Provision for early retirement program
699 -
Deferred installation fee 25
59 Finance lease
322 -
Other provisions 187
56
Total temporary differences 411
241
Permanent differences: Net periodic post-retirement health care benefit costs
281 68
Employee benefits 148
- Donations
161 -
Equity in net income of associates and subsidiaries 9,000
8,024 Others
387 562
Total permanent differences 8,023
7,394 Taxable income
2,818 3,236
Current corporate income tax expense 563
647 Final income tax expense
44 23
Total current income tax expense of the Company 607
670 Current income tax expense of the subsidiaries
4,714 4,401
Total current income tax expense 5,321
5,071
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2013 UNAUDITED AND FOR NINE MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 AUDITED AND FOR NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2012 UNAUDITED
Figures in tables are presented in billions of Rupiah, unless otherwise stated
76
31. TAXATION continued
e. continued The Tax Law No. 362008 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 own 40 or more of the total fully paid and traded stocks, and such stocks are
owned by at least 300 parties, with each party owning less than 5 of the total paid-up stocks. These requirements must be met by a company for a period of 6 months 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 for nine months period ended September
30, 2013 and for the year ended December 31, 2012, the Company has reduced the applicable tax rate by 5.
The Company applied a tax rate of 20 for nine months period ended September 30, 2013 and for the year ended December 31, 2012. The subsidiaries applied a tax rate of 25 for nine
months period ended September 30, 2013 and for the year ended December 31, 2012.
f. Tax assessment i The Company
The Directorate General of Tax “DGT” is assessing the Company’s withholding income taxes for fiscal year 2008 and as of the issuance date of the consolidated financial
statements, the assessment is still in process. ii Telkomsel
On February 25, 2009, the Tax Authorities filed a judicial review request to the Indonesian Supreme Court “SC” for the Tax Court’s acceptance of Telkomsel’s appeal for a refund of
Rp115 billion withholding taxes covering the fiscal year 2002. On April 3, 2009, Telkomsel filed a contra-appeal to the SC. Based on its verdict which was received in November 2012,
the SC decided to reject the request of the Tax Authorities. The SC verdict is legally binding in favor of Telkomsel.
Based on the Tax Court’s verdict in March 2010, Telkomsel’s appeal on value added tax for the fiscal years 2004 and 2005 was accepted and Telkomsel subsequently received the
refund of Rp215 billion in June 2010 with interest of Rp103 billion. On August 10, 2010, the Tax Authorities filed a judicial review request to the SC on the Tax Court’s verdict. On
September 24, 2010, Telkomsel filed a contra-appeal to the SC. As of the issuance date of the consolidated financial statements, the judicial review is still in process.
As a result of the assessment and the Tax Court verdict, on January 28 and February 12, 2010, Telkomsel received the refund for overpayment of the 2008 corporate income tax of
Rp439 billion and Rp4.2 billion, respectively. On April 21, 2010, the Tax Court notified Telkomsel that the Tax Authorities have filed an
appeal to the SC on the Tax Court’s verdict to cancel the Tax Collection Letter STP for the underpayment of income tax Article 25 for the period December 2008 of Rp429 billion
including a penalty of Rp8 billion. 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 value added tax, for the fiscal year 2006 totaling Rp212 billion including a penalty
of Rp69 billion. In November 2010, Telkomsel paid the assessments and in December 2010, Telkomsel filed an objection to the DGT for the withholding tax and VAT assessments
amounting to Rp116 billion including a penalty of Rp38 billion and recorded the payments as a claim for tax refund.
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2013 UNAUDITED AND FOR NINE MONTHS PERIOD ENDED
WITH COMPARATIVE FIGURES AS OF DECEMBER 31, 2012 AUDITED AND FOR NINE MONTHS PERIOD ENDED SEPTEMBER 30, 2012 UNAUDITED
Figures in tables are presented in billions of Rupiah, unless otherwise stated
77
31. TAXATION continued
