PT XL AXIATA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2007, 2008 AND 2009; AND 31 MARCH 2009 AND 2010
Expressed in millions of Rupiah, unless otherwise stated
Page 44
25. TAXATION continued
c. Corporate income tax expensesbenefit continued
2007 2008
2009 2009
2010 1 year
1 year 1 year
3 months 3 months
Consolidated incomeloss before income tax
529,627 69,198
2,363,043 282,394
819,745 Less: net incomeloss before tax
- The Subsidiaries 3,175
7,897 5,926
3,980 4,234
Incomeloss before income tax - The Company
526,452 61,301
2,368,969 286,374
823,979 Expensesbenefit tax calculated at
effective rates 157,936
18,391 663,311
80,185 205,995
Income subject to final tax - net 17,392
9,016 17,887
5,439 3,148
Non-deductible expenses 123,500
76,318 58,557
10,577 15,949
Prior years’ tax adjustments 2,532
1,716 10,610
2,462 -
Changes in tax rate -
110,727 74,333
8,041 -
Final tax expense 11,595
6,011 12,777
3,885 2,518
Income tax expensesbenefit: - The Company
278,171 54,089
653,036 65,583
221,314 - The Subsidiaries
675 -
539 410
- 278,846
54,089 653,575
65,173 221,314
The reconciliation between the Company’s incomeloss before income tax as shown in the consolidated financial statements and the estimated taxable incomeloss for the years ended
31 December 2007, 2008 and 2009; and 3 three months periods ended 31 March 2009 and 2010 is as follows:
2007 2008
2009 2009
2010 1 year
1 year 1 year
3 months 3 months
Incomeloss before income tax 526,452
61,301 2,368,969
286,374 823,979
Temporary differences: - Difference between commercial
and fiscal depreciation and amortisation
1,000,276 646,440
1,885,604 757,342
148,714 - Difference between commercial
and fiscal gainloss on disposal and
write off of assets 3,757
11,656 219,307
32,658 2,516
- Allowance for bad debt expense 34,190
15,847 19,552
12,396 2,927
- Provision for salaries and employee benefits
87,983 52,233
72,223 56,684
32,092 874,346
598,398 2,052,240
834,288 180,395
Permanent differences: -
Non-deductible expenses 411,666
254,392 209,134
37,776 63,795
- Income subject to final tax
57,973 30,054
63,884 19,424
12,591 353,694
224,338 145,250
18,352 51,204
Tax incomeloss 5,799
435,361 461,979
1,102,310 694,788
PT XL AXIATA Tbk AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2007, 2008 AND 2009; AND 31 MARCH 2009 AND 2010
Expressed in millions of Rupiah, unless otherwise stated
Page 45
25. TAXATION continued
c. Corporate income tax expensesbenefit continued
2007 2008
2009 2009
2010 1 year
1 year 1 year
3 months 3 months
Accumulated tax losses 127,316
113,075 543,228
543,228 -
Tax loss adjustment 2005 8,442
- -
- -
Tax loss adjustment 2006 -
5,208 25,817
- -
Tax loss adjustment 2007 -
- 82,052
- -
Tax loss adjustment 2008 -
- 9,849
- -
Taxable lossincome 113,075
543,228 36,469
1,645,538 694,988
Current tax expense - The Company -
- 10,211
- 173,697
Less: Prepaid corporate tax 85,438
210,373 79,545
26,136 69,908
Overunder payment of corporate income tax
85,438 210,373
69,334 26,136
103,789
In accordance with Indonesian Taxation Law, corporate income tax is calculated for the Company and each of its subsidiaries in the understanding that they are separate legal entities
consolidated financial statements are not permitted for computing corporate income tax.
In September 2008, the Indonesian government issued a new income tax regulation which become effective commencing 1 January 2009. With this regulation, the corporate income tax rate
reduced to a fixed rate of 28 in 2009 and 25 in 2010 onwards. On 31 December 2008 and 2009 the Company adjusted the deferred tax assets and liabilities to align with the changes in the
corporate income tax rate.
For fiscal year 2009, The Company will notify extension of Corporate Income Tax Return submission up to 30 June 2010 based on the prevailing regulation. In these consolidated financial
statement, the amount of tax income for the period ended 31 March 2009 and 31 March 2010, and for the years ended 31 December 2009 are based on preliminary calculation. These amounts
may differ from tax income reported in the Corporate Income Tax Return. There is no significant difference between the amount of tax incomeloss for the years ended 31 December 2007 and
2008 and the amount reported in the Corporate Income Tax Returns.
d. Deferred tax liabilities
31122006 Charged
credited to consolidated
statement of income
Prior year adjustment
charged to
consolidated statement of
income 31122007
Difference between commercial and fiscal depreciation and
amortisation 422,347
298,956 -
721,303 Allowance for bad debt expense
25,445 10,257
- 35,702
Provision for salaries and employee benefits
11,553 26,395
- 37,948
Tax losses carried forward 38,196
1,740 2,532
33,924 347,153
264,044 2,532
613,729
