TAXATION continued TAXATION continued

PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2015 and for the Year Then Ended Figures in tables are expressed in billions of Rupiah, unless otherwise stated 87

30. TAXATION continued

e. Tax assessment continued ii Telkomsel continued Telkomsel plan to file an appeal to the Tax Court. As of the date of approval and authorization for issuance of consolidated financial statements, the plan to file the appeal is still in process. In August 2015, Telkomsel received the letter from the Tax Authorities which notified that the Tax Authorities has confirmed that tower should be classified as building and depreciated for 20 years. This letter is based on specific tax ruling on fiscal depreciation of tower issued in July 2015. Subsequently, part of claim for tax refund has been reclassified for principal portion to deferred tax liabilities and penalty charged to profit and loss amounting to Rp125 billion and Rp60 billion, respectively, and Rp66 billion remains as claim for tax refund. In accordance with tax regulation, in September 2015 Telkomsel revised the fiscal depreciation calculation of tower and filed the revised Corporate Income Tax Return for fiscal year 2012, 2013, and 2014. As a result of the revised tax return, Telkomsel reclassified the deferred tax liabilities to current tax payable and paid the underpayment of Corporate Income Tax amounting to Rp174 billion. Subsequently, on September 11, 2015, The Indonesian Tax Authorities issued Tax Collection Letters PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2015 and for the Year Then Ended Figures in tables are expressed in billions of Rupiah, unless otherwise stated 88

30. TAXATION continued

g. Deferred tax assets and liabilities The details of the Groups deferred tax assets and liabilities are as follows: Charged credited to the Charged consolidated credited to the statements of December 31, consolidated other 2014 statements of comprehensive December 31, As restated profit or loss income Reclassification 2015 The Company Deferred tax assets: Provision for impairment of receivable 470 41 - - 429 Net periodic pension and other post-retirement benefits costs 330 3 2 - 335 Accrued expenses and provision for inventory obsolescence 76 135 - - 211 Employee benefit provisions 72 25 - - 97 Deferred installation fee 72 7 - - 65 Finance leases 22 47 - - 69 Total deferred tax assets 1,042 162 2 - 1,206 Deferred tax liabilities: Difference between accounting and tax bases of property and equipment 1,458 139 - - 1,597 Valuation of long-term investment 69 24 - - 45 Land rights, intangible assets and others 14 9 - - 23 Total deferred tax liabilities 1,541 124 - - 1,665 Deferred tax liabilities of the Company 499 38 2 - 459 Telkomsel Deferred tax assets: Provisions for employee benefits 323 16 10 - 349 Provision for impairment of receivables 129 9 - - 138 Recognition of interest under USO arrangements - - Total deferred tax assets 452 25 10 - 487 Deferred tax liabilities: Difference between accounting and tax bases of property and equipment 2,044 350 - 299 1,395 Finance leases 254 131 - - 385 Intangible assets 61 9 - - 52 Total deferred tax liabilities 2,359 228 - 299 1,832 Deferred tax liabilities of Telkomsel - net 1,907 253 10 299 1,345 Deferred tax liabilities of other subsidiaries - net 248 59 1 - 306 Deferred tax liabilities - net 2,654 233 13 299 2,110 Deferred tax assets - net 95 107 1 - 201 PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2015 and for the Year Then Ended Figures in tables are expressed in billions of Rupiah, unless otherwise stated 89

30. TAXATION continued