TAXATION continued FS YE Audited 2014 English

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 83

31. TAXATION continued

e. Tax assessment continued i Telkomsel On January 22, 2014, Telkomsel received a formal verdict from the Tax Court concerning the former’s claim for tax refund for import duties. Based on its verdict, Tax Court accepted the portion of Telkomsel’s claim. In February 2014, Telkomsel submitted a request to refund the accepted portion of the claim amounting to Rp8.5 billion. On September 30, 2014, Telkomsel received a partial refund of the claim for import duties amounting to Rp587 million including penalty Rp579 million. Subsequently, on October 2, 2014, Telkomsel received a refund for VAT and income tax article 22 amounting to Rp7.92 billion. On November 7, 2014, Telkomsel received assessment letters as a result of a tax audit for the fiscal year 2011 by the Tax Authorities. Based on the letters, Telkomsel underpaid the corporate income tax, VAT and withholding tax amounting to Rp257.8 billion, Rp2.9 billion and Rp2.2 billion including penalty of Rp85.3 billion, respectively. Telkomsel accepted the assessment of Rp7.8 billion of the underpayment of corporate income tax, Rp1 billion of the underpayment of the VAT and Rp2.2 billion of the underpayment of the withholding tax including penalty of Rp3.5 billion. The accepted portion was charged to the 2014 statement of comprehensive income. In December 2014, Telkomsel paid the assessment and filed an objection to the Tax Authorities for the assessment for the underpayment of corporate income tax of Rp250 billion including penalty of Rp81.1 billion, which Telkomsel recorded as a claim for tax refund. Management plans to file in February 2015 an objection for the assessment on the underpayment of VAT. As of the date of approval and authorization for issuance of these financial statements, the objection on the corporate income tax assessment is still in process. f. Deferred tax assets and liabilities The details of the Groups deferred tax assets and liabilities are as follows: Charged credited to the consolidated December 31, comprehensive December 31, 2013 income 2014 The Company Deferred tax assets: Provision for impairment of receivables 446 24 470 Net periodic pension and other post-retirement benefits costs 213 78 291 Accrued expenses and provision for inventory obsolescence 27 49 76 Employee benefit provisions 143 71 72 Deferred installation fee 70 2 72 Finance leases 9 13 22 Total deferred tax assets 908 95 1,003 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 84

31. TAXATION continued