Corporate income tax expensesbenefit continued

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 47

25. TAXATION continued

d. Deferred tax liabilities continued

31122009 Charged credited to consolidated statement of income Prior year adjustment charged credited to consolidated statement of income Changes in tax rate 31032010 Difference between commercial and fiscal depreciation and amortisation 1,283,546 37,807 - - 1,321,353 Allowance for bad debt expense 20,902 731 - - 21,633 Provision for salaries and employee benefits 62,610 8,023 - - 54,587 Tax losses carried-forward 16,357 - - - 16,357 1,183,677 45,099 - - 1,228,776 The Company recognised deferred tax assets from accumulated tax losses on the basis that the accumulated tax losses will be utilised against sufficient taxable profits in the foreseeable future. Under the taxation laws of Indonesia, the accumulated tax losses are available to be carried forward and utilised against future years taxable profits for a period of up to five years. The basis supporting recognition of the deferred tax assets is reviewed regularly by the management.

e. Tax assessments 2001 fiscal year

In 2005, the Tax Court accepted the Company’s appeal in relation with income tax article 26 and Value Added Tax VAT amounted to Rp 855 and the Rp 4,576 respectively. The Company recorded the result in the 2005 consolidated statement of income. The Director General of Taxation DGT then submitted application letters for judicial review to the Supreme Court in respect to the above decision letters. In 2009 Supreme Court rejected one of the application letters submitted by DGT with respect to the VAT. Up to the date of this report, the Supreme Court has not responded to other application letters submitted by DGT. 2002 fiscal year In 2006, the Tax Court accepted the Company’s appeal in relation with income tax article 26 and VAT amounted to Rp 1,045 and Rp 2,429 repectively. The Company recorded the results in the 2006 consolidated statement of income. The DGT then submitted application letters for judicial review to the Supreme Court in respect to the above decision letters. Up to the date of this report, the Supreme Court has not responded to all the application letters submitted by DGT. 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 48

25. TAXATION continued