TAXATION continued FS English Q3 2016 FINAL ammend2

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2016 and For the Nine-Month Period Then Ended unaudited Figures in tables are expressed in billions of rupiah, unless otherwise stated 70

27. TAXATION continued

d. The components of income tax expense benefit are as follows continued: 2016 2015 Temporary differences: Provision for onerous contracts 123 - Finance leases 151 252 Provision for personnel expenses 511 5 Net periodic pension and other post-retirement benefits costs 456 116 Depreciation and gain on sale of property and equipment 979 211 Provision for impairment and trade receivables written-off 684 209 Deferred installation fee 28 25 Other provisions 23 107 Early Retirement Allowance Expenses 406 - Provision for long-term investment 173 - Net temporary differences 1,218 189 Permanent differences: Employee benefits 212 149 Net periodic post-retirement health care benefit costs 135 183 Donations 127 116 Equity in net income of associates and subsidiaries 14,680 11.482 Others 331 108 Net permanent differences 13,875 10.926 Taxable income of the Company 2,292 323 Current corporate income tax expense 458 64 Final income tax expense 90 64 Total current income tax expense of the Company 548 128 Current income tax expense of the subsidiaries 7,532 6.029 Total current income tax expense 8,080 6.157 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 the nine months period ended September 30, 2016 and December 31, 2015, the Company has reduced the applicable tax rate by 5. The Company applied the tax rate of 20 for the nine months period ended September 30, 2016 and 2015. The subsidiaries applied a tax rate of 25 for the nine-month periods ended September 30, 2016 and 2015. PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of September 30, 2016 and For the Nine-Month Period Then Ended unaudited Figures in tables are expressed in billions of rupiah, unless otherwise stated 71

27. TAXATION continued