GENERAL AND ADMINISTRATIVE EXPENSES TAXATION TAXATION continued

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2016 and For the Six Months Period Then Ended unaudited Figures in tables are expressed in billions of rupiah, unless otherwise stated 73

27. TAXATION continued

d. The components of income tax expense benefit are as follows: 2016 2015 Current The Company 215 294 Subsidiaries 4,657 3,601 4,872 3,895 Deferred The Company 8 6 Subsidiaries 45 148 37 154 4,835 3,741 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 statement of profit or loss and other comprehensive income is as follows: 2016 2015 Profit before income tax 19,498 14,720 Less income subject to final - net 1,027 1,522 18,471 13,198 Tax calculated at the Company’s applicable statutory tax rate of 20 3,694 2,640 Difference in applicable statutory tax rate for subsidiaries 901 650 Non-deductible expenses 159 296 Final income tax expenses 139 75 Others 58 80 Net income tax expense 4,835 3,741 PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2016 and For the Six Months Period Then Ended unaudited Figures in tables are expressed in billions of rupiah, unless otherwise stated 74

27. 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 three months period ended June 30, 2016 and 2015 is as follows: 2016 2015 Profit before income tax 19,498 14,720 Add back consolidation eliminations 9,374 7,056 Consolidated profit before income tax and eliminations 28,872 21,776 Less: profit before income tax of the subsidiaries 18,554 13,816 Profit before income tax attributable to the Company 10,318 7,960 Less: income subject to final tax 373 266 9,945 7,694 Temporary differences: Provision for onerous contracts 22 - Finance leases 23 52 Provision for personnel expenses 185 359 Net periodic pension and other post-retirement benefits costs 360 79 Depreciation and gain on sale of property and equipment 595 105 Provision for impairment and trade receivables written-off 41 321 Deferred installation fee 12 16 Other provisions 11 134 Early Retirement Allowance Expenses 200 - Net temporary differences 203 316 Permanent differences: Employee benefits 112 103 Net periodic post-retirement health care benefit costs 90 122 Donations 89 79 Equity in net income of associates and subsidiaries 9,388 7,066 Others 90 66 Net permanent differences 9,007 6,696 Taxable income of the Company 735 1,314 Current corporate income tax expense 148 262 Final income tax expense 67 32 Total current income tax expense of the Company 215 294 Current income tax expense of the subsidiaries 4,657 3,601 Total current income tax expense 4,872 3,895 PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of June 30, 2016 and For the Six Months Period Then Ended unaudited Figures in tables are expressed in billions of rupiah, unless otherwise stated 75

27. TAXATION continued