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November 29, 2013

Announcement Concerning Consumption Tax Hike in Japan

Following the Japanese cabinet’s decision to increase the consumption tax rate (central and local), the tax rate applied to NTT Communications (NTT Com) products and services will be increased to 8% as of April 1, 2014.

The change in consumption tax rate follows the August 2012 enactment of the Law to Partially Revise the Consumption Tax Law, etc., and Fundamentally Reform the Tax System in Order to Secure Stable Resources for Social Security.

The changes to be implemented by NTT Com follow:

1) For both new and renewed contracts already in force under the current consumption tax rate of 5%, the revised consumption tax rate will be applied to services rendered from April 1, 2014.

2) For contracts under which payments for services rendered from April 2014 have been settled already, any related differences in amounts will be charged from April 1, 2014.

3) Contractual revisions and memorandums concerning the new consumption tax rate and related amounts will be omitted in principle.

4) For printed or otherwise declared prices of products and services subject to the new tax rates, prices both exclusive and inclusive of the tax shall be provided.

NTT Com sincerely appreciates the understanding of customers and other stakeholders regarding the above changes, which accord with the partially revised consumption tax law and all other related laws and ordinances.

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