PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2013 and for the Year Then Ended
Figures in tables are expressed in billions of rupiah, unless otherwise stated
76
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 purposes of calculating income tax expense and liabilities for the financial
reporting periods of December 31, 2013 and 2012, the Company has reduced the applicable tax rate by 5.
The Company applied a tax rate of 20 for the fiscal years 2013 and 2012. The subsidiaries applied a tax rate of 25 for the fiscal years 2013 and 2012.
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 2013 that will be reported to
the tax office based on prevailing regulations. The amount of corporate income tax for the year ended December 31, 2012 agreed with what was reported in the Annual SPT.
e. Tax assessment i The Company
The Directorate General of Tax “DGT” assessed the Company for Value Added Tax, withholding income taxes and corporate income tax for fiscal year 2011. Tax assessment for
the fiscal year 2008 has been completed with the issuance of Tax Assessment Letter SKP No. SPHP-2WPJ.19KP.032014 regarding notice of workup with no correction for Income
Tax Article 21222326 and 4 2.
In November 2013, the Company received SKPKBs No. 000562070709313 to No. 000652070709313 dated November 15, 2013, for the underpayment of Value Added
Tax VAT for the fiscal year January - September and November 2007 of Rp142 billion. On January 2014, the Company filed an objection to the Tax Authorities regarding the
underpayment of VAT. As of the issuance date of the consolidated financial statements, the Tax Authorities have not yet issued their decision on the objection.
ii Telkomsel On February 25, 2009, the Tax Authorities filed a judicial review request to the Indonesian
Supreme Court “SC” for the Tax Court’s acceptance of Telkomsel’s appeal on 2002 withholding tax amounting to Rp 115 billion. On April 3, 2009, Telkomsel filed a contra-appeal
to the SC. In November 2012 Telkomsel received a favorable verdict from the SC which accepted Telkomsel’s contra-appeal.
On April 21, 2010, the Tax Authorities filed a judicial review request to the SC for the Tax Court’s acceptance of Telkomsel’s request to cancel the Tax Collection Letter STP for the
underpayment of December 2008 Income Tax Article 25 amounting to Rp429 billion including a penalty of Rp8 billion. In May 2010, Telkomsel field a contra-appeal to the SC. As of the
date of approval and authorization for issuance of these consolidated financial statements, the judicial review is still in process.
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2013 and for the Year Then Ended
Figures in tables are expressed in billions of rupiah, unless otherwise stated
77
31. TAXATION continued
e. Tax assessment continued On August 10, 2010, the Tax Authorities filed a judicial review request to the SC for the Tax
Court’s acceptance of Telkomsel’s appeal on 2004 and 2005 VAT totaling Rp215 billion. In September 2010, Telkomsel filed a contra-appeal to the SC. As of the date of approval and
authorization for issuance of these consolidated financial statements, the judicial review is still in process.
In May and June 2012, Telkomsel received the refund of penalty of 2010 Income Tax Article 25 underpayment amounting to Rp15.7 billion based on the Tax Court’s verdict. On
July 17, 2012, the Tax Authorities filed a judicial review request to the SC on the Tax Court’s verdict. On September 14, 2012, Telkomsel filed a contra-appeal to the SC. As of the date of
approval and authorization for issuance of these consolidated financial statements, the judicial review is still in process.
In August 2012, the Tax Authorities accepted Telkomsel’s objection and refunded the whole claim for 2008 underpayment of VAT amounting to Rp232 billion including penalty of Rp81.9
billion.
On March 12, 2012, Telkomsel received assessment letters as a result of a tax audit for the fiscal year 2010 by the Tax Authorities. Based on the letters, Telkomsel overpaid corporate
income tax and underpaid VAT amounting to Rp597.4 billion and Rp302.7 billion including penalty of Rp73.3 billion, respectively. Telkomsel accepted the assessment on the
overpayment of corporate income tax and Rp12.1 billion of the underpayment of the VAT including penalty of Rp6.3 billion. The accepted portion was charged to the 2012
consolidated statement of comprehensive income. On April 5, 2012, Telkomsel received a refund for the overpayment of corporate income tax for fiscal year 2010 amounting to
Rp294.7 billion, net of underpayment of VAT. On May 24, 2012, Telkomsel filed an objection to the Tax Authorities for the underpayment of VAT of Rp290.6 billion including penalty of
Rp67 billion and recorded it as a claim for tax refund. On May 1, 2013, the Tax Authorities rejected Telkomsel’s objection. Subsequently, on July 29, 2013, Telkomsel filed an appeal to
the Tax Court. As of the date of approval and authorization for the issuance of these consolidated financial statements, the appeal is still in process.
In December 2013, the Tax Court accepted Telkomsel’s appeal on 2006 VAT and withholding taxes totaling Rp116 billion. The amount which was previously presented as part of claims for
tax refund is reclassified to advances and other non-current assets.
f. Deferred tax assets and liabilities
The details of the Company and subsidiaries deferred tax assets and liabilities are as follows:
Charged credited to the
consolidated Acquisition
statements of divestment
December 31, comprehensive
of December 31,
2012 income
subsidiaries 2013
The Company Deferred tax assets:
Provision for impairment of receivables 276
170 -
446 Net periodic pension and other post-retirement
benefits costs 129
84 -
213 Employee benefit provisions
173 30
- 143
Deferred connection fee 54
16 -
70 Accrued expenses and provision for
inventory obsolescence 22
5 -
27 Provision for early retirement expense
140 140
- -
Total deferred tax assets 794
105 -
899
