PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2014 and for the Year Then Ended
Figures in tables are expressedin billions of Rupiah, unless otherwise stated
79
31. TAXATION continued
d. The components of income tax expense benefit are as follows:
2014 2013
Current The Company
822 909
Subsidiaries 6,794
6,086 7,616
6,995 Deferred
The Company 178
149 Subsidiaries
100 13
278 136
7,338 6,859
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 comprehensive income is as follows:
2014 2013
Profit before income tax 28,784
27,149 Less income subject to final tax
2,334 1,780
26,450 25,369
Tax calculated at the Company’s applicable statutory tax rate of 20
5,290 5,074
Difference in applicable statutory tax rate for subsidiaries
1,237 1,213
Non-deductible expenses 463
460 Final income tax expenses
168 93
Deffered tax assets that cannot be utilized - net 94
26 Others
86 7
Net income tax expense 7,338
6,859
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2014 and for the Year Then Ended
Figures in tables are expressedin billions of Rupiah, unless otherwise stated
80
31. TAXATION continued
d. The components of income tax expense benefit are as follows: continued The reconciliation between the profit before income tax and the estimated taxable income of the
Company for the year ended December 31, 2014 and 2013 is as follows:
2014 2013
Profit before income tax 28,784
27,149 Add back consolidation eliminations
13,110 11,992
Consolidated profit before income tax and eliminations 41,894
39,141 Less: profit before income tax of the subsidiaries
26,324 24,143
Profit before income tax attributable to the Company 15,570
14,998 Less: income subject to final tax
622 433
14,948 14,565
Temporary differences: Provision for impairment of assets
805 596
Provision for impairment and trade receivables written-off
574 854
Net periodic pension and other post-retirement benefits costs 390
414 Provision for incentives to subcibers’ migration
209 -
Finance lease 64
366 Deferred installation fee
11 83
Valuation of fair value of Put Option and long-term investment
8 352
Payment of provision for early retirement program -
699 Depreciation and gain on sale of property
and equipment 574
403 Provision for personnel expenses
342 13
Other provisions 19
33
Net temporary differences 1,164
879
Permanent differences: Employee benefits
244 247
Donations 209
193 Net periodic post-retirement health care benefit costs
74 374
Equity in net income of associates and subsidiaries 13,121
11,979 Gain on sale of long term investment
- 499
Others 170
460
Net permanent differences 12,424
11,204 Taxable income of the Company
3,688 4,240
Current corporate income tax expense 738
848 Final income tax expense
84 61
Total current income tax expense of the Company 822
909 Current income tax expense of the subsidiaries
6,794 6,086
Total current income tax expense 7,616
6,995
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2014 and for the Year Then Ended
Figures in tables are expressedin billions of Rupiah, unless otherwise stated
81
31. TAXATION continued
d. The components of income tax expense benefit are as follows: continued Tax Law No. 362008 which futher regulated in Government Regulation No. 772013 stipulates a
reduction of 5 from the top rate applicable to qualifying listed companies, for those whose stocks are traded in the IDX which meet the prescribed criteria that the public owns 40 or more of the
total fully paid and traded shares, and such shares are owned by at least 300 parties, with each party owning less than 5 of the total paid-up shares. These requirements must be met by a
company for a period of 183 days in one tax year. The Company has met all of the required criteria; therefore, for the purpose of calculating income tax expense and liabilities for the financial
reporting periods of December 31, 2014 and 2013, the Company has reduced the applicable tax rate by 5.
The Company applied a tax rate of 20 for 2014 and 2013. The subsidiaries applied a tax rate of 25 for the year ended December 31, 2014 and 2013.
The Company will submit the above corporate income tax computation in its income tax return “Surat Pemberitahuan Tahunan” or “Annual SPT” for the fiscal year 2014 that will be reported to
the tax office based on the prevailing regulations. The amount of corporate income tax for the year ended December 31, 2013 agreed with what was reported in the Annual SPT.
e. Tax assessment i The Company
In November 2013, the Company received tax assesment letters “SKPKBs” No. 000562070709313 to No. 000652070709313 dated November 15, 2013, for the
underpayment of VAT for the period January - September and November 2007 amounting to Rp142 billion. On January 20, 2014, the Company filed an objection to the Tax Authorities
regarding the underpayment of VAT. The Company has received a rejection in response to the objection through the decree of the Directorate General of Tax “DGT” No. 2498 to 2504
and 2541 to 2543WPJ.192014 dated December 16 and 18, 2014. The Company accepted the assessment on the underpayment of VAT amounting to Rp22 billion including penalty
Rp10 billion. The accepted portion was charged to the 2014 consolidated statement of comprehensive income. The Company plans to file an appeal for the rejection on the objection
of underpayment of VAT interconnections. As of the date issuance of these consolidated financial statements, the Company is still in the process of filing the appeal.
In November 2014, the Company received tax assessment letters “SKPKBs” as the result of tax audit for fiscal year 2011 from the Tax Authorities. Based on the letters, the Company
underpaid Value Added Tax on tax period January until December 2011 amounting to Rp182.5 billion include penalty Rp60 billion and underpaid corporate income tax in 2011
amounting to Rp2.8 billion include penalty Rp929 million. The Company has paid the underpayment tax. The accepted portion on the underpayment VAT amounting to
Rp4.7 billion including penalty Rp2 billion is charged to the 2014 consolidated statement of comprehensive income and the portion of VAT Interconnection amounting to Rp178 billion
include penalty Rp58 billion is recognized as claim for tax refund. The Company has submitted the objection to the tax assessment result in regards to the underpayment of VAT
relative to Interconnections transactions in 2011 to the Tax Authorities. As of the date issuance of these consolidated financial statements, the appeal is still in process.
