PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2013 and for the Year Then Ended
Figures in tables are expressed in billions of rupiah, unless otherwise stated
75
31. 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 years ended December 31, 2013 and 2012 is as follows:
2013 2012
Profit before income tax 27,149
24,228 Add back consolidation eliminations
11,992 10,536
Consolidated profit before income tax and eliminations 39,141
34,764 Less profit before income tax of the subsidiaries
24,143 21,616
Profit before income tax attributable to the Company 14,998
13,148 Less income subject to final tax
433 344
14,565 12,804
Temporary differences: Provision for impairment and
trade receivables written-off 854
43 Provision for impairment of assets
596 246
Net periodic pension and other post-retirement benefits costs
414 291
Finance lease 366
196 Deferred installation fee
83 72
Provision for personnel expenses 13
537 Valuation of fair value of long-term investment
352 -
Depreciation and gain on sale of property and equipment
403 424
Payment of provision for early retirement program 699
699 Other provisions
33 19
Net temporary differences 879
1,105
Permanent differences: Net periodic post-retirement health care benefit costs
374 90
Employee benefits 247
218 Donations
193 215
Equity in net income of associates and subsidiaries 11,979
10,583 Gain on sale of long term investment
499 -
Others 460
360
Net permanent differences 11,204
9,700 Taxable income of the Company
4,240 4,209
Current corporate income tax expense 848
842 Final income tax expense
61 36
Total current income tax expense of the Company 909
878 Current income tax expense of the subsidiaries
6,086 5,750
Total current income tax expense 6,995
6,628
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2013 and for the Year Then Ended
Figures in tables are expressed in billions of rupiah, unless otherwise stated
76
31. TAXATION continued
d. The components of income tax expense benefit are as follows: continued Tax Law No. 362008 which 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 purposes of calculating income tax expense and liabilities for the financial
reporting periods of December 31, 2013 and 2012, the Company has reduced the applicable tax rate by 5.
The Company applied a tax rate of 20 for the fiscal years 2013 and 2012. The subsidiaries applied a tax rate of 25 for the fiscal years 2013 and 2012.
The Company will submit the above corporate income tax computation in its income tax return “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.
e. Tax assessment 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. Tax assessment 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 fiscal year January - September and November 2007 of Rp142 billion. On 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 2002 withholding tax amounting to Rp 115 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 field 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.
