PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2016 and for the Year Then Ended
Figures in tables are expressed in billions of Rupiah, unless otherwise stated Table of Content
26. TAXATION continued
g. Deferred tax assets and liabilities continued As of December31, 2016 and 2015, the aggregate amounts of temporary differences associated
with investments in subsidiaries and associated companies, for which deferred tax liabilities have not been recognized wereRp34,568 billion and Rp28,295 billion, respectively.
Realization of the deferred tax assets is dependent upon the Group’s capability in generating future profitable operations. Although realization is not assured, the Group believes that it is
probable that these deferred tax assets will be realized through reduction of future taxable income when temporary differences reverse. The amount of deferred tax assets is considered realizable;
however, it can be reduce if actual future taxable income is lower than estimates. h. Administration
From 2008 to 2016, the Company has been consecutively entitled to income tax rate reduction of 5 for meeting the requirements in accordance with the Government Regulation No. 812007as
amended by Governemnt Regulation No. 772013 and lastly by Government Regulation No. 562015 in conjunction withthe Ministry of Finance Regulation No. 238PMK.032008. On the
basis of historical data, for the year ended December 31,2016, the Company calculates the deferred tax using the tax rate of 20.
The taxation laws of Indonesia require that the Company and its local subsidiaries to submit individual tax returns on the basis of self-assessment. Under prevailing regulations, the DGT may
assess or amend taxes within a certain period. For fiscal years 2007 and earlier, the period is within ten years of the time the tax became due, but not later than 2013, while for fiscal years
2008 and onwards, the period is within five years of the time the tax became due. The Ministry of Finance of the Republic of Indonesia has issued Regulation No.85PMK.032012
dated June 6, 2012 as amended by PMK No. 136-PMK.032012 dated August 16, 2012 concerning the appointment of State-Owned Enterprises SOEs to withhold, deposit and report
VAT and Sales Tax on Luxury Goods PPnBM according to the procedures outlined in the Regulation which is effective from July 1, 2012. The Ministry of Finance of the Republic Indonesia
also has issued Regulation No.224PMK.0112012 dated December 26, 2012 concerning the appointment of SOEs to withhold income tax article 22 as amended by PMK No.
16PMK.0102016 dated February 3, 2016. The Company has withheld, deposited, and reported VAT, PPnBM and also income tax article 22 in accordance with the Regulation.
27. BASIC AND DILUTED EARNINGS PER SHARE
Basic earnings per share is computed by dividing profit for the year attributable to owners of the parent company amounting to Rp19,352 billion and Rp15,489 billion by the weighted average number
of shares outstanding during the period totaling 98,638,501,532 shares and 98,176,527,553shares after stock split for the year ended December 31, 2016 and 2015, respectively. The weighted average
number of shares takes into account the weighted average effect of changes in treasury stock transaction during the year.
Basic earnings per share amounting to Rp196.19 and Rp157.77 in full amount for the year ended December 31, 2016 and 2015, respectively.
The Company does not have potentially dilutive financial investments as of December 31, 2016 and 2015.
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2016 and for the Year Then Ended
Figures in tables are expressed in billions of Rupiah, unless otherwise stated Table of Content
28. CASH DIVIDENDS AND GENERAL RESERVE
Pursuant to the AGM of Stockholders of the Company as stated in notarial deed No. 26 dated April 17, 2015 of Ashoya Ratam, S.H., MKn., the Company’s stockholders approved the distribution of cash
dividend and special cash dividend for 2014 amounting to Rp7,319 billion Rp74.55 per share and Rp1,464 billion Rp14.91 per share, respectively. On May21, 2015, the Company paid the cash
dividend and special cash dividend totalling Rp8,783 billion. Pursuant to the AGM of Stockholders of the Company as stated in notarial deed No. 50 dated April 22,
2016 of Ashoya Ratam, S.H., MKn., the Company’s stockholders approved the distribution of cash dividend and special cash dividend for 2015 amounting to Rp7,744 billion Rp78.86 per share and
Rp1,549 billion Rp15.77 per share, respectively. On May26, 2016, the Company paid the cash dividend and special cash dividend totalling Rp9,293 billion.
On December 27, 2016, the Company had paid an interim dividend amounting to Rp1,920 billion or totalling Rp19.38 per share.
Appropriation of Retained Earnings
Under the Limited Liability Company Law, the Company is required to establish a statutory reserve amounting to at least 20 of its issued and paid-up capital.
The balance of the appropriated retained earnings of the Company as of December 31, 2016 and 2015 amounting to Rp15,337 billion, respectively.
29. PENSION AND OTHER POST-EMPLOYMENT BENEFITS
