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March 31, 2016

Revision of Consumption Taxation on Cross-border Supplies of Services

TOKYO, Japan—NTT Communications Corporation (NTT Com), the ICT solutions and international communications business within NTT (NYSE: NTT), announced today that the criterion for the levy of consumption tax on gprovision of electronic services" conducted by foreign businesses has been partially amended in accordance with the Act for Partial Revision of the Income Tax Act and Other Acts executed on March 31, 2015. This reform has been applied on or after October 1, 2015.

Provision of electronic services refers to services provided via electronic and telecommunication networks (e.g., internet) such as the provision of e-books, music, advertisements and cloud services.

For some of NTT Com's electronic services to foreign businesses, there are cases where payment of national consumption tax and local consumption tax will not be required. Further relevant electronic services offered by NTT Com include cloud services (SaaS, IaaS and PaaS), such as Enterprise Cloud, Enterprise Mail and WideAngle.

For more information, please visit the Japanese National Tax Agency website below or contact us using the attached form.

Revision of Consumption Taxation on Cross-border Supplies of Services https://www.nta.go.jp/foreign_language/consumption_tax/04.htm

About NTT Communications Corporation

NTT Communications provides consultancy, architecture, security and cloud services to optimize the information and communications technology (ICT) environments of enterprises. These offerings are backed by the company’s worldwide infrastructure, including the leading global tier-1 IP network, the Arcstar Universal One™ VPN network reaching 196 countries/regions, and 140 secure data centers worldwide. NTT Communications’ solutions leverage the global resources of NTT Group companies including Dimension Data, NTT DOCOMO and NTT DATA.
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