F-78 PERUSAHAAN PERSEROAN PERSERO
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of January 1, 2012 Restated, December 31, 2012 Restated and December 31, 2013 and for the years ended December 31, 2011 Restated, 2012 Restated and 2013
Figures in tables are presented in billions of rupiah, unless otherwise stated 29. OPERATIONS, MAINTENANCE AND TELECOMMUNICATION SERVICE EXPENSES
2011 2012
2013
Operations and maintenance 9,184
9,012 10,667
Radio frequency usage charges Notes 38c.i and 38c.ii 2,846
3,002 3,098
Concession fees and USO charges 1,235
1,445 1,595
Electricity, gas and water 836
879 1,063
Cost of phone, set top boxes, SIM and RUIM cards 967
687 752
Cost of IT services 144
222 677
Leased lines and CPE 406
407 440
Vehicles rental and supporting facilities 291
293 439
Insurance 431
671 374
Project management 46
102 138
Travelling expenses 54
57 53
Others 13
19 36
Total 16,453
16,796 19,332
Refer to Note 35 for details of related party transactions.
30. GENERAL AND ADMINISTRATIVE EXPENSES 2011
2012 2013
Provision for impairment of receivables Note 7d 883
915 1,589
General expenses 326
527 675
Training, education and recruitment 229
259 412
Travelling 256
259 341
Collection expenses 327
341 340
Professional fees 235
187 272
Meetings 86
105 138
Security and screening 97
62 93
Social contribution 290
129 85
Stationery and printing 53
55 73
Others 153
197 137
Total 2,935
3,036 4,155
Refer to Note 35 for details of related party transactions.
31. INTERCONNECTION EXPENSES 2011
2012 2013
Domestic interconnection and transit 2,414
3,464 3,720
International interconnection 1,141
1,203 1,207
Total 3,555
4,667 4,927
Refer to Note 35 for details of related party transactions.
F-79 PERUSAHAAN PERSEROAN PERSERO
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of January 1, 2012 Restated, December 31, 2012 Restated and December 31, 2013 and for the years ended December 31, 2011 Restated, 2012 Restated and 2013
Figures in tables are presented in billions of rupiah, unless otherwise stated 32. TAXATION
a. Prepaid income taxes
2012 2013
Corporate income taxes - subsidiaries 52
96 Current portion
52 58
Non-current portion Note 13 -
38 b. Prepaid other taxes
2012 2013
The Company: VAT
- 142
Subsidiaries: Import dutiesNote 43
10 10
VAT 735
751 Article 23 - Withholding tax on services delivery
11 35
Total 756
938 Current portion
756 477
Non-current portion Note 13 -
461 c. Current income tax liabilities
2012 2013
The Company: Article 25 - Installment of corporate income tax
30 53
Article 29 - Corporate income tax 198
165 Subsidiaries:
Article 25 - Installment of corporate income tax 378
440 Article 29 - Corporate income tax
674 284
Total 1,280
942
d. Other tax liabilities
2012 2013
The Company: Article 4 2 - Final tax
6 11
Article 21 - Individual income tax 21
34 Article 22 - Withholding tax on goods delivery and import
- 5
Article 23 - Withholding tax on services 10
12 Article 26 - Withholding tax on non-resident income
3 1
VAT 374
441 Sub-total
414 504
F-80 PERUSAHAAN PERSEROAN PERSERO
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of January 1, 2012 Restated, December 31, 2012 Restated and December 31, 2013 and for the years ended December 31, 2011 Restated, 2012 Restated and 2013
Figures in tables are presented in billions of rupiah, unless otherwise stated 32. TAXATION continued
d. Other tax liabilitiescontinued
2012 2013
Subsidiaries:
Article 4 2 - Final tax 37
48 Article 21 - Individual income tax
60 82
Article 23 - Withholding tax on services 32
34 Article 26 - Withholding tax on non-resident income
18 16
VAT 3
72
Sub-total 150
252
Total 564
756
e. The components of income tax expense benefit are as follows:
2011 Restated
2012 Restated
2013
Current The Company
777 878
909 Subsidiaries
4,896 5,750
6,086 Sub-total
5,673 6,628
6,995 Deferred
The Company 43
461 113
Subsidiaries 279
281 18
Net 236
742 95
Total 5,437
5,886 6,900
f. Reconciliation of income tax expense 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 comprehensive income is as follows:
2011 Restated
2012 Restated
2013
Profit before income tax 20,982
24,027 27,030
Less income subject to final tax 462
913 1,780
20,520 23,114
25,250 Tax calculated at the Company’s applicable statutory
tax rate of 20 4,104
4,623 5,050
Difference in applicable statutory tax rate for subsidiaries
906 1,050
1,213 Non-deductible expenses
329 392
567 Final income tax expense
63 52
93 Realization on sale of long-term investment
- -
100 Others
35 231
77
Net income tax expense 5,437
5,886 6,900
F-81 PERUSAHAAN PERSEROAN PERSERO
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of January 1, 2012 Restated, December 31, 2012 Restated and December 31, 2013 and for the years ended December 31, 2011 Restated, 2012 Restated and 2013
Figures in tables are presented in billions of rupiah, unless otherwise stated 32. TAXATION continued
f. Reconciliation of income tax expense continued The computations of the income tax expense for the years ended December 31, 2011, 2012 and 2013 are as
follows:
2011 Restated
2012 Restated
2013
Estimated taxable income of the Company 3,568
4,209 4,241
Corporate income tax: The Company
714 842
848 Subsidiaries
4,896 5,750
6,086 Final tax expense - the Company
63 36
61
Total income tax expense - current 5,673
6,628 6,995
Income tax benefit expense - deferred - effect of temporary differences at enacted maximum tax
rates The Company
Accrued early retirement benefits -
140 140
Valuation of long-term investment -
- 70
Provision for impairment of receivables and trade receivables written off
47 58
170 Finance leases
6 31
73 Depreciation and gain on sale of property and
equipment 36
348 38
Net periodic post-employment benefits costs 20
94 18
Deferred installation fee 21
31 16
Accrued expenses and provisions for obsolescence
4 8
5 Amortization of intangible assets, land rights
and others 4
7 3
Payments of deferred consideration for business combinations
27 -
- The Company - net
43 461
113 Telkomsel
Charges from leasing transactions -
23 98
Amortization of license -
5 19
Accounts receivable - Government 17
14 6
Depreciation of property and equipment 238
156 95
Provision for employee benefits 38
49 44
Provision for impairment of receivables and trade receivables written off
14 53
4 Telkomsel - net
307 254
20 Subsidiaries - others - net
28 27
38 Net income tax benefit - deferred
236 742
95
Income tax expense - net 5,437
5,886 6,900
F-82 PERUSAHAAN PERSEROAN PERSERO
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of January 1, 2012 Restated, December 31, 2012 Restated and December 31, 2013 and for the years ended December 31, 2011 Restated, 2012 Restated and 2013
Figures in tables are presented in billions of rupiah, unless otherwise stated
32. TAXATION continued f. Reconciliation of income tax expense continued
Tax Law No. 362008, which is further regulated in Government Regulation No. 772013 stipulates a reduction of 5 from the top rate applicable to qualifying listed companies, for those whose shares of stock 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 ended December 31, 2011, 2012 and 2013, the Company has reduced the applicable tax rate by 5.
The Company applied a tax rate of 20 for the fiscal years 2011, 2012 and 2013. The subsidiaries applied a tax rate of 25 for the fiscal years 2011, 2012 and 2013.
The Company will submit the above corporate income tax computation in its income tax returns “Surat Pemberitahuan Tahunan” or “Annual SPT” for the fiscal year 2013 that will be reported to the tax office based on
prevailing regulations. The amount of corporate income tax for the year ended December 31, 2012 agreed with what was reported in the Annual SPT.
g. Tax assessments i
The Company The Directorate General of Tax “DGT” assessed the Company for Value Added Tax, withholding income
taxes and corporate income tax for fiscal year 2011. The tax audit for the fiscal year 2008 has been completed with the issuance of Tax 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 periods January -
September and November 2007 of Rp142 billion. In 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.
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 on its 2002 withholding tax amounting to Rp115 billion. On April 3, 2009, Telkomsel filed a contra-appeal to the SC. In November 2012, Telkomsel received a
favorable verdict from the SC which accepted Telkomsel’s contra-appeal.
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 filed 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.
F-83 PERUSAHAAN PERSEROAN PERSERO
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of January 1, 2012 Restated, December 31, 2012 Restated and December 31, 2013 and for the years ended December 31, 2011 Restated, 2012 Restated and 2013
Figures in tables are presented in billions of rupiah, unless otherwise stated 32. TAXATION continued
g. Tax assessments continued ii Telkomsel continued
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 its 2004 and 2005 VAT totaling Rp215 billion. In September 2010,
Telkomsel filed 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.
In May and June 2012, Telkomsel received the refund of penalty of 2010 Income Tax Article 25 underpayment amounting to Rp15.7 billion based on the Tax Court’s verdict. On July 17, 2012, the Tax
Authorities filed a judicial review request to the SC on the Tax Court’s verdict. On September 14, 2012, Telkomsel filed 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.
In August 2012, the Tax Authorities accepted Telkomsel’s objection and refunded the whole claim for 2008 underpayment of VAT amounting to Rp232 billion including penalty of Rp81.9 billion.
On March 12, 2012, Telkomsel received assessment letters as a result of a tax audit for the fiscal year 2010 by the Tax Authorities. Based on the letters, Telkomsel overpaid corporate income tax and underpaid VAT
amounting to Rp597.4 billion and Rp302.7 billion including penalty of Rp73.3 billion, respectively. Telkomsel accepted the assessment on the overpayment of corporate income tax and Rp12.1 billion of the
underpayment of the VAT including penalty of Rp6.3 billion. The accepted portion was charged to the 2012 consolidated statement of comprehensive income. On April 5, 2012, Telkomsel received a refund for the
overpayment of corporate income tax for fiscal year 2010 amounting to Rp294.7 billion, net of the underpayment of VAT. On May 24, 2012, Telkomsel filed an objection to the Tax Authorities for the
underpayment of VAT of Rp290.6 billion including penalty of Rp67 billion and recorded it as a claim for tax refund. On May 1, 2013, the Tax Authorities rejected Telkomsel’s objection. Subsequently, on July 29, 2013,
Telkomsel filed an appeal to the Tax Court. As of the date of approval and authorization for the issuance of these consolidated financial statements, the appeal is still in process.
In December 2013, the Tax Court accepted Telkomsel’s appeal on 2006 VAT and withholding taxes totaling Rp116 billion. The amount which was previously presented as part of prepaid other taxes is reclassified to
advances and other non-current assets.
F-84 PERUSAHAAN PERSEROAN PERSERO
PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of January 1, 2012 Restated, December 31, 2012 Restated and December 31, 2013 and for the years ended December 31, 2011 Restated, 2012 Restated and 2013
