Income tax expense PT. Bayan Resources Tbk - Prospectus

Schedule 532 PT BAYAN RESOURCES AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 MARCH 2008 AND 2007 AND 31 DECEMBER 2007, 2006 AND 2005 Expressed in million Indonesian Rupiah, unless otherwise stated

10. TAXATION continued c. Income tax expense continued

31 March 31 December 2008 2007 2007 2006 2005 Unaudited Restated Restated Temporary differences: Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . 106 106 423 — — Permanent difference: Equity in net profitlosses of subsidiaries . . . . 25,712 9,883 56,752 8,104 5,140 Interest income subject to final tax . . . . . . . . . . 251 80 883 227 66 Non deductible expenses . . . . . . . . . . . . . . . . . . 612 — 377 3 — 25,245 9,857 56,669 7,880 5,074 Estimated taxable income . . . . . . . . . . . . . . . . . . . . . 3,987 89,433 358,316 113,190 11,073 Current income tax expense at 30—the Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,196 26,830 107,495 33,957 3,322 Current income tax expense—subsidiaries . . . . . . . . 879 822 405 9,814 122 Consolidated current income tax expense . . . . . . . . . 2,075 27,652 107,900 43,771 3,444 The reconciliation between income tax expense and the theoretical tax amount on the Company’s profit before income tax is as follows: 31 March 31 December 2008 2007 2007 2006 2005 Unaudited Restated Restated Consolidated profit before income tax . . . . . . . . . . . 25,201 141,075 367,765 185,152 123,540 Adddeduct: Consolidation eliminations . . . . . . . . . . . . . . . . . . . . 40,175 4,168 60,841 33,111 1,996 Profit before income tax—subsidiaries . . . . . . . . . . . 36,144 45,953 5,277 112,953 115,545 Profit before income tax—the Company . . . . . . . . . 29,232 99,290 301,647 105,310 5,999 Income tax at 30 . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,770 29,787 90,494 31,593 1,800 Equity in net profitlosses of subsidiaries . . . . . . . . 7,714 2,965 17,026 2,431 1,542 Interest income subject to final tax . . . . . . . . . . . . . . 75 24 265 68 20 Non-deductible expenses . . . . . . . . . . . . . . . . . . . . . . 183 — 113 1 — Other adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 32 127 — — Income tax expense—the Company . . . . . . . . . . . . . 1,196 26,830 107,495 33,957 3,322 Income tax expense—subsidiaries . . . . . . . . . . . . . . 4,960 14,107 5,394 30,115 38,544 Consolidated corporate income tax expense . . . . . . . 6,156 40,937 112,889 64,072 41,866 The Group has accumulated corporate income tax losses which are available to be carried forward and offset against future taxable income for periods of five to eight years as specified in each company’s CCoW and applicable tax regulations. F-49 Schedule 533 PT BAYAN RESOURCES AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 MARCH 2008 AND 2007 AND 31 DECEMBER 2007, 2006 AND 2005 Expressed in million Indonesian Rupiah, unless otherwise stated

10. TAXATION continued c. Income tax expense continued

Tax losses carried-forward which can be offset against future taxable income were incurred in the following fiscal years: Amounts Subsidiaries 31 December 2000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,912 31 December 2001 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,030 31 December 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 295 31 December 2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 808 31 December 2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101,217 31 December 2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52,143 31 December 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92,398 31 December 2007 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 223,200 31 March 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53,963 528,966

d. Deferred tax assets, net

31 March 31 December 2008 2007 2007 2006 2005 Unaudited Restated Restated The Company Deferred tax assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — — — — Deferred tax assets at the beginning of the periodyear . . — — — — — Charge to consolidated statements of income . . . . . . . . . . — — — — — Deferred tax assets at the end of the periodyear . . . . . . . — — — — — Subsidiaries Tax losses carried forward . . . . . . . . . . . . . . . . . . . . . . . . 88,289 33,465 106,762 52,342 69,793 Difference between commercial and tax net book value of fixed assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,210 18,960 28,506 12,694 35,930 Provision for employee benefits . . . . . . . . . . . . . . . . . . . . 1,362 837 1,161 853 1,493 Allowance for obsolete inventory . . . . . . . . . . . . . . . . . . . 760 154 409 87 460 Deferred exploration and development expenditure . . . . . 36,474 21,128 53,753 26,629 10,627 Deferred stripping costs . . . . . . . . . . . . . . . . . . . . . . . . . . 15,530 — 16,778 — 40,494 Finance leases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 975 58 3,119 — 3,090 Allowance for doubtful accounts . . . . . . . . . . . . . . . . . . . — — — — 44 66,642 32,230 63,188 39,347 53,509 Unrecognised deferred tax assets . . . . . . . . . . . . . . . . . . . 3,202 — 4,456 — — 63,440 32,230 58,732 39,347 53,509 Deferred tax assets at the beginning of the periodyear . . 58,732 39,347 39,347 53,509 91,931 Charge to consolidated statements of income . . . . . . . . . . 4,708 7,117 19,385 14,162 38,422 Deferred tax assets at the end of the periodyear . . . . . . . 63,440 32,230 58,732 39,347 53,509 F-50 Schedule 534 PT BAYAN RESOURCES AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 MARCH 2008 AND 2007 AND 31 DECEMBER 2007, 2006 AND 2005 Expressed in million Indonesian Rupiah, unless otherwise stated

10. TAXATION continued d. Deferred tax assets, net continued