OPERATION, MAINTENANCE AND TELECOMMUNICATION SERVICE EXPENSES

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 72

27. TAXATION continued

b. Prepaid taxes June 30, December 31, 2016 2015 The Company Income tax 750 750 VAT 415 350 1,165 1,100 Subsidiaries Corporate income tax 56 16 VAT 1,872 1,536 Income tax Article 23 - Withholding tax on service delivery 36 20 Article 22 1 - 1,965 1,572 3,130 2,672 c. Taxes payable June 30, December 31, 2016 2015 The Company Income taxes Article 4 2 - Final tax 20 37 Article 21 - Individual income tax 139 51 Article 22 - Withholding tax on goods delivery and imports 3 2 Article 23 - Withholding tax on service delivery 24 23 Article 25 - Installment of corporate income tax 2 17 Article 26 - Withholding tax on non-resident income 1 2 Article 29 - Corporate income tax 8 - VAT VAT – Tax collector 275 396 472 528 Subsidiaries Income taxes Article 4 2 - Final tax 67 54 Article 21 - Individual income tax 119 113 Article 22 - Withholding tax on goods delivery and imports 3 1 Article 23 - Withholding tax on service delivery 111 102 Article 25 - Installment of corporate income tax 644 237 Article 26 - Withholding tax on non-resident income 9 9 Article 29 - Corporate income tax 1,042 1,548 VAT 694 681 2,689 2,745 3,161 3,273 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