BangkokBangkok

SingaporeSingapore

JakartaJakarta

Hong KongHong Kong

TaipeiTaipei

KansaiKansai NagoyaNagoya

NaritaNarita

SeoulSeoul

ShanghaiShanghai

ManilaManila

QingdaoQingdao

BeijingBeijing DalianDalian

HanedaHaneda

Ho Chi Minh CityHo Chi Minh City

HanoiHanoi

Okinawa

GuangzhouGuangzhou XiamenXiamen

Kuala LumpurKuala Lumpur

IT Business Hub Linking Japan and Asia

沖縄

Support for the Information and Communications Industry and Finance Industry

2019-2020

Information and Communications Industry

Business Establishment Guide

1

BangkokBangkok

Kuala LumpurKuala Lumpur

SingaporeSingapore

JakartaJakarta

HanoiHanoi

Hong KongHong Kong

Kansai Kansai

Narita Narita

SeoulSeoul

ShanghaiShanghai

ManilaManila

QingdaoQingdao

BeijingBeijing DalianDalian

HanedaHaneda

Ho Chi Minh CityHo Chi Minh City

GuangzhouGuangzhouXiamenXiamen TaipeiTaipei

Within a Four Hour Flight from Okinawa

Okinawa International Information and Communications Network

Okinawa

Population of Japan 130 million

Population of China 1.3 billion

NagoyaNagoya

235

63

63

21

23

45

12

4

2

18

772

4

1432423

1452930

14

57

114445

21

12311249

28

14

11

18

322

78

35

28

18

24

27

22

121

49

42

21

24

224

42

153

184

56

49

21

24

4262457

203

56

49

21

27

4410

4

29

722

3

3

4

33

Naha Airport

Domestic route 3rd in Japan

Number of regular passenger flight routes

Naha Airport's domestic and international route networks are among the best in Japan. Connect with Asia's major cities in 4 hours or less with flights from Okinawa.

December 31, 2018

23 flights（2009） ⇒ 235 flights（2018）

An Appro

ximate 10

.3 fold

increase

※Source: Data collected by the Okinawa Convention & Visitors Bureau (OCVB) (in and after 2011) ; Tourism Guide (2009, 2010)

※Unit (number of flights)　※As of the end of the fiscal year for 2009-2017

（2017）

□ Volume of International Cargo Handled by Naha Airport □ No. of regular International Passenger Flights

2017（Year）0

50

100

150

200

250

unit（1000 tons）

※Source: Ministry of Land, Infrastructure and Transport Civil Aviation Bureau

1,809 tons （2008） ⇒ 180,050 tons （2017）

Okinawa Prefecture maintains a cloud environment through public-private sector collaboration, providing an environment for generating bilateral business between Asia and Japan.

Also Adaptable to the Challenges of Risk Diversification and BCP (Business Continuity Planning)

Substantial IT InfrastructureOptimal Access to Asia's Major Cities

With the reduced risk of simultaneous disasters due to the prefecture's distance from mainland Japan, Okinawa provides answers to businesses' issues by serving as a base for dispersing development and data collection activities.

2009 2010 2011 2012 2013 2014 2015 2016 2017

■Hong Kong ■Beijing■Shanghai■Taipei ■Seoul■Guam ■Taichung ■Tianjin ■Takao ■HangzhouBusan■■Xi'an ■Nanjing ■Bangkok ■Daitei ■Singapore

An Approximate 100-fold increase

2008 2009 2010 2011 2012 2013 2014 2015 2016

IT and Financial Industry Composition is Increasing in O

kinawa

2

・Warm weather all year round with little temperature change, provides a comfortable living environment. ・With low amounts of cedar pollen, the environment is comfortable for people with allergies even in the spring.

・Locations boasting blue skies and gorgeous beaches that spread before your eyes・Beautiful natural surroundings currently being considered for World Heritage designation

・Excellent access to major sightseeing spots within Okinawa Prefecture・Third highest number of domestic passenger flight services in Japan! Approx. 40 "Tokyo-Okinawa" flights; approx. 30 "Kansai-Okinawa" flights, etc.・Direct international flights to and from 15 cities around the world. Use your weekends to casually venture overseas!

※Source: Okinawa Prefecture “Tourist entry statistics”

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018（Year）

One of Japan's Top Resort Locations

□ Trends in the Number of Tourists

1000

800

600

400

200

0

unit（million）

■Trends in the number of tourists visiting Okinawa

①Motobu Town 【Churaumi Aquarium】

④Naha City 【Shurijo】

②Onna Village 【Cape Maeda】

③Chatan Town 【American Village】

⑥Iriomote Island ⑤Miyakojima City 【Irabu Bridge】

■Attractiveness Ranking by Prefecture（2018）

Ranking Prefecture

1

2

3

4

5

Hokkaido

Kyoto

Tokyo

Okinawa

Kanagawa

Year-round comfortable living environment

Excellent access enables you to fully enjoy your days off work

New Record Set for thePast Six Consecutive Years

Japanese tourists　　　Overseas tourists

《2018》● Number of entry tourists … 9.99 million● Of which are tourists 　　　 from overseas ………… 3 million

As one of Japan's top resort regions visited by large number of tourists from around Japan and the world, Okinawa Boasts an Extensive Aviation Service Network and excellent access also optimal for the business scene.

※Source: Regional Brand Survey 2018 (Brand Research Institute, Inc.)

Enjoy a “Resort” work station surrounded by a rich natural environment

Haebaru Town

Nanjo City

Yaese Town

Itoman City

Tomigusuku City

Urasoe City

Naha City

Nishihara Town

Yonabaru Town

Nakagusuku Village　　　Ginowan City

Kitanakagusuku Village

Chatan Town

Okinawa City

Ie Island

Yomitan Village

Kadena TownUruma City

Nakagusuku-Port

Okinawa Expressway andNaha Airport motorway

Onna Village

Kin Town

Ginoza Village

Nago City

Motobu Town

Nakijin Village

Ohgimi Village

Higashi Village

Kunigami Village

Naha Port

Naha Airport

Okinawa IT Shinryo Park

Ishigaki City Miyakojima City6

5

4

1

3

2

3

Substantial

Support System

One of Japan's Top Hubs for IT Companies

《Brimming With Energy, Okinawa is Japan's Youngest Prefecture》

…………………………

……………

42.1

17.1%

0.31%（Ranks 2nd nationwide after Tokyo）

（1st in Japan）

（1st in Japan） Population 1.44 million（25th in Japan）

■ Average age

■ Percentile of Youth Population

《 Japan-only Special Economic Zones 》

《 Substantial Support System 》

Okinawa has prepared a multitude of systems for utilization by IT companies located within the prefecture. Special taxation provisions such as investment tax credits and the highest income tax deduction rates (maximum of 40%) in Japan.

Maximum corporate income tax deduction of 40% (10 years) and other tax incentives■ Special IT/Financial Zones

■Average age of population by prefecture

Source: Statistics Bureau, Ministry of Internal Affairs and Communications."National Tax Survey 2015"

Ranking AgePrefecture

1

2

3

Okinawa

Aichi

Shiga

42.1

44 .3

44 .7

■Ratio of youth population by prefecture（2017）

Source: Statistics Bureau, Ministry of Internal Affairs and Communications."Social Indicators by Prefecture 2019"

Ranking proportion（％）Prefecture

1

2

3

Okinawa

Shiga

Saga

17.1

14 .1

13 .7

■Population growth rate by prefecture（2018）

Source: Statistics Bureau, Ministry of Internal Affairs and Communications."Population Estimates（As of October 1, 2018）"

Ranking Rate of change（％）Prefecture

1

2

3

Tokyo

Okinawa

Saitama

0 .72

0.31

0 .28

Okinawa is a remote island prefecture, its population comprising approx. 1% of Japan’s total population. Also, Okinawa welcomes more than 9.99 million tourists annually (of which more than 3 million are from overseas), making the prefecture ideal for test marketing for inbound travelers and the Japanese market.

■ 470 IT businesses have established bases in Okinawa (about 14-fold increase over the past 20 years)■ One of Japan's top nearshore development bases■ Optimal for test marketing for the Japanese market

Support is provided for business start-ups utilizing IT (needs assessment, commercialization verification, etc.)

・Assistance of up to ¥16,000,000/year is provided for expenses related to Asian expansion and development in collaboration with other industries.・Support is provided for the development of business models utilizing IT and for testbed, as well as for verification projects utilizing IoT platforms, etc.

■ Support for business start-ups

Assistance of up to ¥15,000,000/year is provided to partially cover communication expenses for telecommunication lines linking Okinawa with locations elsewhere in Japan and overseas.

■ Assistance with communication expenses

■ Support for human resources training/employment・Support for IT engineer skills enhancement (OJT etc.)・Maximum of ¥1,200,000/employee in assistance for companies employing 3 or more new recruits from within Okinawa Prefecture aged under 35 years

■ Support for software development/promotion of IoT use

……………………………■ Population growth rate

IT and Financial Industry Composition is Increasing in O

kinawa

4

(Year)（According to “Information and communication-related companies employment status survey” questionnaire results）

1990～200910 12

31 22 28 30 29 33 35

62 62

71 79 91

113 129

149163

20 20

21 22

36

52

63

76 79

57 65

69 79

80

76

75

81

80

53 57

45

61

66

75

91

88

97

202216

237

263

301

346

387

427

454470

2018

250

(Companies)

0

50

100

150

200

300

350

400

450

500(Employees)

30,000

20,000

25,000

15,000

10,000

5,000

036

170

82

83

99

2010 2011 2012 2013 2014 2015 2016 2017

20,212

21,758

23,741

24,869 25,912

26,627

28,045

29,379 29,403

18,075 ＊

＊

＊

＊＊

＊＊

＊

＊＊

"Okinawa Information and Communications Industry Promotion Plan"（First - Third Plans）

"Okinawa 21 Century Vision Basic Plan" "Asian Economy Strategy Concept"

Multi-media Island Concept（1998～2011）

Okinawa Smart Hub Concept（2012～）

※The number of information/communication-related businesses in Okinawa Prefecture is approx. 900 (in total).

Okinawa Prefecture has focused on developing the Information and communication industries as an economic strategy. As a result, 470 IT companies have established businesses, and about 29,000 new jobs have been generated as of January 2019.

470 Companies Established 29,403 Jobs Generated

Number of newly established businesses　 and employees by industry

（As of January 2019）

Information Service Business

Call Centers

Content Creation

Software Development

Other

99838217036470

No. of Companies

6,20917,8741,6193,110591

29,403

No. ofEmployeesIndustry

Total

＊ No. of Employees

Other

Software Development

Content Creation

Call Centers

Information Service Business

Growth of Newly Established Businesses in theInformation and Communication Industry in Okinawa

Rapid Buildup of the Information and IT Industry in Okinawa

5

Generation

IT Innovation and Strategy Center Okinawa

Proposing Strategy

We formulate IT-based strategies and innovation strategies for local government(prefectural, municipal, etc.) and organizations.

Testing Concepts(Okinawa, an island for Field Testing Projects)We aim to make Okinawa "an island for Field Testing Projects" by conducting numerous trials aimed at introducing advanced innovation to Okinawa.

Cultivating Businesses

We assist in the creation of new businesses and services that will help solve social issues.

Engaging Startups

We assist in the creation of start-up businesses from Okinawa and in integrating start-up businesses with a strong affinity to Okinawa.

Developing Training Programs(Events)We host events related to IT innovations and help to create opportunities for career development.

Developing Training Programs(IT-related Personnel)We assist in the training of high-level /advanced IT personnel such as data scientists, and other IT-related personnel.

participation

What Can Be Done with ISCO

participation

participation

business models【IT companies and

organizationsoutside Okinawa (including overseas)】

【Industries in Okinawa】

【IT companies andorganizations in Okinawa】

business models

Realizing Bankoku Shinryo no Okinawa ("Okinawa as a Bridge between Nations") reaching throughout the world, Okinawa aims to play a leading role in Japan's economy.

Promote IT-related industries in Okinawa and Okinawan industries overall through the utilization of cutting-edge IT technology.

Bringing innew innovation

Bringing innew innovation

Bringing in issues

TEL.+81-98-953-8154 URL https://isc-okinawa.org/Naha Business Incubation Office 4F, 2-3-6 Mekaru, Naha City, Okinawa 900-0004【Contact】 IT Innovation and Strategy Center Okinawa （ISCO）

BusinessMatching

Providing a Platform forField Testing

Providing a Co-creationEnvironment

ActivateIT Innovation

Delivering new businesses and new services to Asia and the world!

Economic growth for all industries in Okinawa Prefecture

Nurturing people and business through the power of IT and generating new value.Contributing to the growth of Okinawan industries overall and the enhancement of international competitiveness■Propose growth strategies for promoting IT-related industries in Okinawa and Okinawan industries overall through the utilization of cutting-edge IT technology.■Realize the creation of new value and problem-solving within Okinawa's industrial world as an innovation base in Okinawa through the implementation of growth strategies.■As a natural industry support organization, connect the Okinawan industrial world and the IT industry to formulate innovation platforms that enable co-existence and co-prosperity among various players. ■As a base that brings together people and information from around Japan and the world, aim to be an "IT innovation island" that generates new businesses and social systems.

IT and Financial Industry Composition is Increasing in O

kinawa

6

［ ResorTech＝Resort × Technology ］

●Drones/underwater drones●Beach entertainment tech●Marine sports tech●Above water/underwater photography and live transmission tech etc.

Okinawa's Vision for the Future

● ResorTech Okinawa “Okinawa International IT Trade Fair”

ResorTech is a made-up word combining "resort" and "technology".

With development not just limited to the IT and Tourism Industries, but extending to the agricultural, retail, manufacturing, medicine, and numerous other industries, ResorTech aims to enrich the daily lives of people in the region through, technology accumulation and industry development.

In addition, ResorTech provides a platform for measures that are carried out throughout the year. Such as, verification activities, open innovation, start up support, and human resource training. Taking advantage of Okinawa's strength the “Okinawa Brand” concept aims not only to further evolve the IT industry-which alongside tourism is Okinawa leading industry ‒ but also expand the vigor of these two Industries to all industry in Okinawa as brother engines, sparking and innovative social revolution.

ConferenceStart-ups

Business exchange

ExhibitionBusiness negotiations

● What is ResorTech?

【Contact】 Office（ISCO） TEL.+81-98-953-8154　 Ｅ-ｍａｉｌ resortech@isc-okinawa.orgOrganizer: ResorTech Okinawa “Okinawa International IT Trade Fair Executive Committee”

Technology enriching community living and industries overall, including tourism, agriculture, fishery,

retail/manufacturing, and medicine

Starting with Okinawa's leading industries of tourism and IT, ResorTech aims to spread innovation and new business integration to the world through “Industry” x “IT”.

Hybrid trade fair

●Data-driven marketing●Traffic operations management solutions

●Chatbot/RPA●Digital transformation etc.

●Tour tech (tourism tech)●Multilingual communication support services

●Real-time translation conference services

●Settlement solutions etc.

（cross）

●Food tech/food sharing●Agri (agriculture)/fisheries/ aquaculture tech●Medical care/heath tech●Smart distribution, smart factories etc.

●Reception/reservation/ ticketing solutions●B2B order and supply solutions●Robotics (reception, crime prevention, cleaning, catering, etc.)

●Entertainment tech●Recommendation services (shops, restaurants) etc.

●MaaS (Mobility as a Service), automatic driving

●Drone taxi●Smart security●Sharing economy etc.

7

Projects for Constructing/Verifying Network Infrastructure for Promoting the Use of IoT (Field Testing Projects)3

In order to create new businesses that are based on meeting market needs and resolving issues for Okinawa's industry. We support collaboration between information and communications-related companies and other industries, the development of new services utilizing IT, and verification activities aimed at making these new services a reality.

Supportinstitution

Financialinstitution

ＩＴOther industries

Researchinstitution

Specialistadvisors

Constructing business plans utilizing IT Commercialization of new

businesses and services based on other industry needs

Business plansVerification/development

Verificationactivit ies

Verification resultsFeedback

Specialistadvisors

②Project Supporting the Construction ofBusiness Models Using IT and Testbeds

③Projects for Constructing/Verifying NetworkInfrastructure for Promoting the Use of IoT

Okinawa-Asia IT Business Development Promotion Project1

We provide financial assistance for expenses related to product development (including improvement and localization), software etc., in order to promote Okinawa's information and communications-related companies’ “overseas expansion into Asia and beyond” and “creation of bidirectional business, both domestically and internationally, through collaboration and cooperation with IT companies throughout Asia as well as IT-related enterprises in Okinawa”.

We provide financial assistance for information and communications-related companies in Okinawa with regard to costs involved in utilizing the data center in Okinawa. As well as, make use of AI, IoT, and Big Data technology in the creation of cloud services for collaborating and cooperating with other industries such as the tourism, agricultural, forestry, and fisheries industries.

Cross-Industrial Cloud Environment Promotion Sector

Support for the expansion of Okinawa-biased information and communication-related companies overseas starting with Asia. Collaboration with IT companies in Asia etc. connection with other industries such as tourism.

Corporations with their head office or branch offices in Okinawa Prefecture(In the case of consortiums, at least half of the member companies meet this requirement)

Network infrastructure promoting IoT utilization

Provided free of charge during the demonstration period

Scope of demonstration environment construction

GatewayAPIlinkage

ModuleIoT network

Control/operation

Display

IoT platformservice

Analysis function (dashboard)

To be procured this fiscal year

TEL.+81-98-953-8154 URL https://isc-okinawa.org/【Contact】 IT Innovation and Strategy Center Okinawa （ISCO）

Notification to worker

①Okinawa-Asia IT BusinessDevelopment Promotion Project

Examples of Subsidy Program Utilization

Customer NAS NAS

Use of datastorage

DatabackupMaintenance

Operation center(Okinawa)

NAS NAS

NAS

CustomerNAS group

User

LTE

heart rateTemperatureacceleration

Smartphone

Independently distinguishes data storage facility

Two different data sets (actual weight and image analysis results) are learned by AI in the cloud, improving guess accuracy for number of pigs and size (weight) resolution

analysis.

Automation of image analysis in cloud and AI (machine learning)

②Weatherinformation

Risk levelColor display,

etc.

System

Risk information・Hot work risk・Changes in 　 physical condition・Topplings and falls

Risk information・Hot work risk・Changes in physical condition

Use of analysis data storage

AnonymizationCloud server

Original analysis algorithm

Biosensors

①BiodataBLE

With the aim of promoting industrial development using IoT technology and increasing the efficacy of economic activities, industrial organization and business operation in Okinawa Prefecture and SI business operators (business operation providing communication networks, sensor devices and analysis/reaction systems), support for collaboration to construct and verify IoT-relative services and business models.

Project Supporting the Construction of Business Models Using IT and Testbeds2

Support for Industrial Collaboration and New Business Creation

Up to ￥16,000,000

Two-thirds of subsidized expenses

～February, 2020

■Contents of subsidySubsidized expense

Subsidy rate

Subsidy period

Up to ￥10,000,000

Two-thirds of subsidized expenses

～February, 2020

■Contents of subsidySubsidized expense

Subsidy rate

Subsidy period

￥5,000,000 ～￥1,000,000

half of subsidized expenses

～February, 2020

■Contents of subsidy（Freely provided portion may also be used without the subsidy）Subsidized expense

Subsidy rate

Subsidy period

《Eligible Persons》

Corporations with their head office or branch offices in Okinawa Prefecture(In the case of consortiums, at least half of the member companies meet this requirement)

《Eligible Persons》

Organizations and business operators in Okinawa Prefecture (players) + SI business operators

《Eligible Persons》

Asia IT Business Model Sector

Data distribution infrastructure

Okinawa Prefecture DC

Scope of public recruitment

Demonstration contractor'sserver

Independent NAS that completely eliminates data loss without relying on clouds（Asia IT Business Model Sector）

Demonstration of pig fattening management system using IoT x cloud AI

Demonstration of construction worker health management using IoT smartware

Data is automatically stored in cloud

Weight data is automatically recorded using IoT scalesTo improve AI analytical accuracy, it is important to obtain actual data during the initial period.

Automatic image recording using fixed-point cameras

Notification to manager

Risk levelColor display,

etc.

Support for Industrial C

ollaboration and New Business C

reation

8

TEL.+81-98-953-8154 URL https://isc-okinawa.org/【Contact】 IT Innovation and Strategy Center Okinawa （ISCO）

Matching Support

Future session

Generate new ideas and form cooperative relationships by holding industry collaboration workshops aimed at resolving social issues

・Social EC platform services・Smart speaker concierge service for tourist hotels・Vacation rental multilingual self-check-in service

2018 Subsidy Performance (examples)

Projects Promoting Use of Cutting-Edge IT5Our mission is to introduce the cutting-edge IT to the management level of Okinawan industries responsible for making business decisions and planning. In addition, we provide support for not only in the area of implementing the initiatives aimed at promoting the cutting-edge technologies but also in the effort of attracting skilled personnel, technology resources, and innovative ideas for our main focused fields of AI, IoT, Big Data, robots, drone, and VA/AR from both domestically and international sources.

Human resources involved in planning and/or decision-making regarding management strategies and introduction of new technologies in various Okinawan industries (level of business owner, management/planning department head, etc.)

ＩＴ×

Other industrialneeds

New service / Innovation

Needs×SeedsMatching

FutureCenter

IT solution

Okinawa Innovation / Matching Site

Matching Event（Business negotiations）Assignment of counselors, etc.

Issues/needs

《Eligible Persons》

・Matching with cutting-edge IT businesses and network formation support・Demonstrations by cutting-edge IT businesses in Okinawa・Support for surveys of cutting-edge IT introduction case examples

・Support for formulation of plans for introducing (implementing) cutting-edge IT・Support for trial calculation of costs for the introduction/operation of cutting-edge IT・Support for formulating specifications, etc., related to the introduction of cutting-edge

Support for cutting-edge IT introduction planning

・IT utilization seminars introducing cutting-edge IT trends/utilization examples・IT innovation courses that deepen understanding of conditions for introducing cutting-edge IT, taught by business operators who are actually using cutting-edge IT

IT utilization seminars/IT innovation courses

Improvement of productivity/creationof high added-value in Okinawan industries

Advancement/invigoration of information andcommunication-related industries in Okinawa

"Industry x IT innovation"...ResorTech as an Infrastructure for Developing Measures

concept

ResorTech ＝ General term for innovation generated and disseminated by Okinawa

Held annually

Implementedthroughoutthe year

Measure

s developme

nt

infrastructure

ResorTech measure package = Improve productivity and increase added vale through "Industry x IT"

Promotion of all industries using IT promotion measures

Industry

Promotion of tourism industries using ITInformation industry promotion

【Okinawan IT industries x .0】 【Testbed Island Okinawa】 【Open Innovation Island Okinawa】

Event

【Place for business matching, marketing, reporting of results】

ResorTech Okinawa International IT Trade Fair

Tourism, agriculture, fisheries, retail, manufacturing, medicine, etc.

Projects to Promote the Generation of Okinawa-style Open Innovation4We aim to promote collaboration between industrie and generate new businesses utilizing IT by: providing support to start-up companies that utilize IT, holding industry collaboration workshops, and integratedly implementing business matching using databases of the technologies and services possessed by information and communications-related companies in Okinawa Prefecture.

《El ig ib le Persons》Corporat ions or individual business operators that have located their head office (business office) in Okinawa and have been in operation for Within 3 years, or that are intending to open a business in Okinawa Prefecture.

Support for business start-ups

Subsidized expense

Subsidy rate

Subsidy period

■Contents of subsidy

Up to ￥2,000,000

8/10 of subsidized expenses

7months ※Scheduled（～January, 2020）

EngagingStartups

Demonstration activities and

introduction support

Demonstration activities and

introduction support

Create places providing support and opportunities for human resources training/ start-ups and new business conditions

Promotion of cutting-edge IT introduction(Generation of new services)

(Improvement of work processes)

Increase of opportunities for IT use (expansion of business opportunities)Promotion of new technology transfer

Cutting-edge IT introduction contact support

9

Content and Features of Course

ODITT Skills Enhancement Courses1

Support for Personnel Training

Business SummaryIn order to construct order-receiving system or high added value business activities in Okinawa's information and communication related industries. As well as transitioning business models from order-receipt to business-proposal forms. We provide training for human resources who will play leading roles in the promotion of Okinawa's information and communication-related industries. Such as, core human resources with project management skills and human resource playing leading rose in the development, creation, and expansion of new businesses.

Project-BasedLearning

Type of Course Course Period,Minimum ParticipantsContent

・5-20days・5 people or more（Number of trainees from companies in Okinawa）

On the JobTraining

・10-30days・One trainee dispatched (as a general rule)

Technical course

Qualification ExamPreparation Course

○ Information services field　 　　○ Software development field○ Contents field　　　　　　　　○ Information security field○ IT-related fields in other industries

○ Managers, general employees, and engineers at IT-related 　 companies in Okinawa○ Individuals engaged in new businesses related to IT services○ IT division staff and engineers in each industry

Target Fields Eligible Persons

◆Courses use case examples very similar to actual projects, enabling trainees to transition smoothly to 　actual projects (PBL, OJT)

◆Courses can also be used as a sampling course for companies outside Okinawa to gain understanding 　of Okinawa technological capabilities, such as new projects and nearshore development (PBL, OJT)

◆Original courses that can be customized according to content and scheduling needs are also available 　for a wide range of fields and levels (technical courses).

Main Points

Company C

●Teaching fee●Travel expenses ●Accommodation expenses

Receiver company

ODITT Office

Course fees

●Teaching fee●Travel expenses (at time of follow-up)●Accommodation expenses (at time of follow-up)

Course fees

Payment oftuition fees

※Partial subsidization of tuition fees

Companies outside Okinawa

Companies outside Okinawa

Companiesin Okinawa

CourseImplementation

Project ordered Project ordered

Trainee dispatch

Project-BasedLearning

On the JobTraining

・1-5days・8 people or more

・1-5days・8 people or more

※When taking PBL/OJT courses, registration via the ODITT website is required.

Case-based exercise-style courses taught by instructors invited to Okinawa from companies outside the prefecture that are expected to make business project orders

Dispatch trainees to companies outside of Okinawa who are expected to make a project order. Acquisition of experiential training “on the job”.

Classroom-lecture-style courses for improving technical skills aimed at all worker levels, from entry level, through middle level, to managerial level

Case-based exercise-style courses taught by instructors invited to Okinawa from companies outside Okinawa that are expected to make business project orders

Company A Company BOrdering company

Ordering company

※Travel/accommodation expenses are born by Company B

Registration

application Registration

application

Room 304, University of the Ryukyus, Research Center for Community Innovation and Revitalization 3F, 1 Senbaru, Nishihara Town, Okinawa 903-0213info@itedu.okinawaTEL. +81-98-943-4643 FAX. +81-98-943-4642

ODITT Search【Contact】 ODITT Consortium（Information Industry Association of Okinawa） ODITT Office

Support for P

ersonnel Training

10

Asia

Okinawa

●Invite IT engineers from Asia and around the world to OkinawaOJT (around 1 months) at IT companies in Okinawa

●Invite IT business operators from Asia and around the world to OkinawaInspection tours/business matching in Okinawa (around 1 week)

Invitation

●Dispatchment of managers of IT companies in OkinawaDispatch IT business operators to Asia and around the world (around 1 week)

●Dispatchment of IT engineers of IT companies in OkinawaOJT (around 10 days) for IT engineers at IT companies in Asia and around the world

World-class human resources

Recognition of IT-related industries

Improvement of IT literacy

Promotion of the business establishmentof IT companies

Future IT Personnel Development Promotion Project3To promote Okinawa-based IT-related industries and expand company accumulation through development and a stable pool of future IT personnel, efforts have been made to develop and secure a wide range of human resources (elementary, junior high, high and college students and their guardians, etc.), as well as PR activities within the IT industry.

U-turn and I-turn IT Engineer Securement Support Project2

Asia IT Personnel Exchange Promotion Project4In order to promote the overseas expansion of Okinawan businesses were undertaking initiatives such as inviting IT business operators and engineers from Asia and countries around the world to Okinawa. As well as, dispatching Okinawan business operators and IT engineers overseas with the aim of deepening business, and constructing human networks connecting Asia and the world.

Support Menu

・Circulate recruitment information via dedicated websites・Hold matching events for IT engineers wishing to relocate to Okinawa(Tokyo, Osaka)・Matching companies in Okinawa with IT engineers from outside Okinawa by specialist coordinators

①Development of　IT personnel

②Invigoration of　IT-related industries

③IT company 　composition

Conduct variousprojects

Registration

Participation

Recruitment

Employment

Consultants

Dedicated I-turn/U-turn Website

Matching Events

Non-O

kinawa-Based

IT Engineers

Okinaw

a-Based

Companies

Middle school students,Primary school children

Collegestudents

General Prefectural Residents (guardians, job seekers, etc.)

High school students, etc.

Subsidy

● Projects related to mastery of IT skills

● Okinawa IT Public Relations Events

(Examples) Programming classes, Robotics Contests, etc.

(Examples) Business contests, Hack-a-thon, etc.

○Various Projects

・IT expert - prefectural resident seminars and symposiums・Exhibition of IT-related works produced in educational institutions・Installment of booths for introduction of Okinawa-based companies in IT-related fields, etc. Promotional event: "IT Shinryo Festival"

Okinawa PrefecturalGovernment

Private Entities

Dedicated website SearchIT Career Okinawa

【Contact】 IT Professional Consortium (GALILEO SCOPE, Inc.) TEL. +81-98-917-0848

Through supporting recruitment activities by information and communication companies in Okinawa targeting I-turn and U-turn IT engineers (those who have moved to or back to Okinawa from other areas), as well as conducting PR aimed at IT technicians outside Okinawa Prefecture to change jobs and/or relocate. Further, efforts are made to match companies in Okinawa with I-turn and U-turn IT engineers.

Dispatchment

● Projects related to raising awreness amongs students and parents/guardians, etc.

TEL.+81-98-953-8154 URL https://isc-okinawa.org/【Contact】 IT Innovation and Strategy Center Okinawa （ISCO）

TEL.+81-80-7145-9449【Contact】 Secretariat for Future IT Human Resources Creation Projects Subsidies

11

Subsidies and Financing Systems, etc.Local Employment Development Subsidy

Business

Okinaw

aLabor B

ureau

Completion of the business installation and maintenance + hiring

Completion report (payment application)

Flowchart (Process up to the 1st Payment)

For business operators who install and maintain offices in designated employment development promotion areas, or in underpopulated areas that have been designated as employment improvement areas (costing 200,000 yen or more per item, 3,000,000 yen or more in total), and continuously employ three or more jobseekers (two or more in the case of business installation) who live in Okinawa as of the date of employment, and are hired through Hello Work, etc., as workers, incentives are provided for up to a maximum of 3 years (3 times) in accordance with installation and maintenance costs, and the number of workers hired. Furthermore, subsidies will be increased for companies that have raised productivity (application conditions also apply).

Regional Employment Development Course （Equipment Assistance）

In the case of business installation (*), an amount equivalent to half the payment amount will be added onto the first payment installment. Also, in the case of operators of small/medium-sized businesses, an amount equivalent to half the payment amount will be added onto the first payment installment.Requirement for establishment of additional repayment: A business operator must submit a plan within two months from the date of establishment of a business（※）Case of corporation: Date of corporate registration, If you are an individual business: Opening notification

■Subsidy chart

(1) Granted aid amount： ¥480,000 to ¥7,600,000（¥500,000 to ¥8,000,000 in the case of business installation）(2) Subsidy period：Once per year, for a maximum of three years

Installation and maintenance cost of the business

Number of eligible employees

¥480,000（¥500,000）

¥570,000（¥600,000）

¥860,000（¥900,000）

¥1,140,000（¥1,200,000）

￥3,000,000 to ￥10,000,000

￥10,000,000 to ￥30,000,000

￥30,000,000 to ￥50,000,000

Greater than ￥50,000,000

3（2）～4 5～9 10～19 Greater than 20

（For details regarding this system, please contact the Okinawa Labor Bureau Subsidy Center.）1

【Contact】Okinawa Labor Bureau Subsidy Center1F, Second Naha Local Government Building, 2-1-1, Omoromachi, Naha City, 900-0006 TEL. +81-98-868-1606

Plan documents

②Business installation and maintenance + hiring

①Submission

④Screening Business site survey

⑤Grant decision and grant payment

③Submission

Good Job Consultation Station

Consultation services regarding enquiries related to employment and subsidies aimed at business owners are also available at the Good Job Consultation Office.

6F Kafuna Asahibashi A Block, 1-20-1 Izumizaki, Naha City, Okinawa 900-0021 TEL. +81-98-941-2044

¥760,000（¥800,000）

¥950,000（¥1,000,000）

¥1,430,000（¥1,500,000）

¥1,900,000（¥2,000,000）

¥2,850,000（¥3,000,000）

¥3,800,000（¥4,000,000）

¥5,700,000（¥6,000,000）

¥7,600,000（¥8,000,000）

¥1,430,000（¥1,500,000）

¥1,900,000（¥2,000,000）

¥2,850,000（¥3,000,000）

¥3,800,000（¥4,000,000）

For established business operators who install and maintain business offices in Okinawa Prefecture (costing 200,000 yen or more per contract, 3,000,000 yen or more in total) and continuously employ three or more young jobseekers under the age of 35 years who are residents of Okinawa Prefecture accordingly, wages paid to such workers will be partially subsidized. In cases where the business operator employs three or more eligible young workers and furthermore employs newly school graduates who are residents of Okinawa Prefecture, the new graduate may also be eligible for wage assistance (application conditions also apply).

Okinawa Youth Employment Promotion Course （Wage Assistance）

(1) Subsidy amount：Organizations will be entitled to a subsidy for applicable employees of one-third (SMEs) or 　　　　　　　　one-fourth (large corporations) of the employees' salary, as defined by the Minister of Health, Labour and Welfare.(2) Subsidy period：Twice a year, for one year (two years in the case of business operators with good worker retention)(3) Maximum subsidy：￥1,200,000/year/worker

（For details regarding this system, please contact the Okinawa Labor Bureau Subsidy Center.）

2

(※) "A person living in Okinawa" refers to a person living in Okinawa at the stage of application for the job.(※) Employees who have continued working means, in principle, those who are employed without a predetermined contract period. However, those who are on a fixed-term employment contract 　　must meet all requirements listed below: ① Employment contracts can be renewed even after the employee becomes 65 years of age if said employee wishes. ② Contracts may be renewed after two years from the contract completion dateNote: Those eligible are business operators who deliver/transfer products and complete payment between submission of the plan and the contract completion date, and workers employed during this period.

※Number in ( ) is the case of business installation.

Subsidies ❶ and ❷ may be received together, but the conditions for eligibility differ. To receive both payments, conditions for both subsidies must be met.

Subsidies and Financing Systems, etc.

12

■Subsidy amount　Three-fourths of subsidized expense (within the "subsidized amount limit" in the following table)

Trainingperiod

subsidizedamount limit（per person）

From5 days, withinone month

One monthto Less than2 months

2 monthsto Less than3 months

3 monthsto Less than4 months

More than 4 months

￥100,000 ￥150,000 ￥200,000 ￥250,000 ￥300,000

■Subsidy amount

Number of newly employed persons

subsidized amount limit（per person）

One person 2 people 3 people

￥300,000 ￥600,000 ￥900,000

The project is intended to promote conversion to full-time employees by subsidizing accommodation and transportation expenses when Okinawa-based companies that promote the conversion of Part-time employees to full time employees by participation in another prefecture or Okinawa for the purpose of skill acquisition and qualification acquisition, etc.

Program providing subsidies to small and medium businesses in Okinawa that are taking measures to newly hire full-time employees and establish a long-term employment relationship with them.

Full-Time Employment Company Support Project Full-time Employee Hiring Expansion Subsidy Program

①Persons hired as full-time employees through Hello Work introductions　※Employees hired on or before October 1, 2019 (scheduled)②Persons aged under 35 years (excluding those who graduated from highschool/university within the past year) who have not been hired as a full-time employee within the past six months

③Business owner takes measures to establish full-time and long-term employment for the applicable employees

The Okinawa Industry Promotion Corporation 　Financing Program

【Contact】Headquarters of the Okinawa Development Finance Corporation (Small and Midsize Enterprises (SME) Financing)　

The Okinawa Industry Promotion Corporation 　Financing Program

【Contact】 Management Support Division, OkinawaIndustry Promotion Public Corporation

（For details, please contact the Industry Promotion Public Corporation.） （For details, please contact the Industry Promotion Public Corporation.）

Assistance is provided for business owners who make fixed-term contract workers full-time workers, or who directly employ full-time workers.

Course to Acquire Full-Time Employment

Career Advancement Subsidy

1

■Subsidy chart

投下固定資産取得費補助金Subsidy for Invested Fixed Asset Acquisition Expense

（For details regarding this system, please contact the Okinawa Labor Bureau Subsidy Center.）

■Subsidy for Invested Fixed Asset Acquisition Expense

Number of newly employed persons Subsidy rate

Subsidized amount limit

Greater than 50

35～49

20～34

5％

5％

5％

¥1,000,000,000

¥600,000,000

¥200,000,000

・・・・・・・

・・・・・・・・・・・・・・・・・・・・・・・・・

・・・・・・・

・・・・・・・

●Subsidized expenses●Target Zones●Subsidized business operator

●Subsidy requirements

Building and its attached facilities, constructionInformation and communication industry promotion areaSoftware businesses, information processing service businesses, information providing service businesses, etc.・Person who obtained building of total floor space 500㎡ or more of building used for own business (2,000㎡ or more for call center)・Person who uses 1/2 or more of building total floor space・Person who newly employs 20 or more employees living in the prefecture (200 or more employees in call center)・Person who started its operation or sales within 2 years after acquisition of industrial land

TEL. +81-98-941-1785

【Contact】Industrial Site Promotion Division, Department of Commerce, Industry and Labor, Okinawa Prefectural Government TEL. +81-98-866-2770

【Contact】Okinawa Labor Bureau Subsidy Center TEL. +81-98-868-1606

Category

¥427,500

¥213,750

¥213,750

Subsidy amount per person

¥570,000

¥285,000

¥285,000

①Fixed-term employment 　→ ful l -t ime employment

②Fixed-term employment 　 → Non-fixed term employment

③Non-fixed term employment 　 → full-time employment

Small and medium-sizedcompanies Large companies

※ The above amounts show only base amounts; allowances are added if productivity conditions (*1) are met.

　（※1）“Productivity” in the most recent fiscal year in which a subsidy payment application was submitted must have increased 6% or more over three years previously.

※ In the case that the worker in question is the mother or father in a single parent household, or that a business operator certified under the Youth Employment Promotion Act makes a fixed-term contract worker aged under 35 years a full-time worker, allowances will be added.

※For (1) through (3) inclusive, the maximum number of employees for which payment application may be submitted by the one office per year is 20.

※“Full-time worker” includes diverse full-time employees (employees whose work location/duties are limited, employees who work shorter hours)

【Contact】Industrial Promotion Division, Okinawa Industry Promotion Public CorporationTEL. +81-98-859-6239　 FAX. +81-98-859-6233Okinawa Industry Support Center 1831-1 Oroku, Naha City, Okinawa 901-0152

Main Conditions for subsidy

Main Conditions for subsidy

①Part-time employees (over 6-month employment period) shall be converted to full-time employees (There shall exist rules of employment in which conversion to full-time employment is described)

②Corporation that has submitted a notification for installation of business establishment covered by employment insurance in the prefecture

（1）Eligible Trainees :

（2）Subsidized expenses :

Employees(Employees other than persons converted to full-time employees are also subsidized)①Transportation expenses (expenses for one roundtrip from worksite to training site (accommodations))②Accommodation expenses (rent, dormitory charge, common service charge and deposit money) ※Number of persons subsidized is the number of persons converted to full-time employees.

（1）Subsidized business operator :

Owner of small and medium businesses with 300 or fewer fully employed workers ("Notification of Establishment of Workplace to which Employment Insurance Applied" must have been submitted in Okinawa Prefecture)

（2）Subsidy amount : 300,000 yen per person (up to 3 people per company)

TEL. +81-98-859-6237

13

Haebaru Town

Nanjo City

Yaese Town

Itoman City

Tomigusuku City

Urasoe City

Naha City

Nishihara Town

Yonabaru Town

Nakagusuku Village　　　Ginowan City

Kitanakagusuku VillageChatan Town

Okinawa City

Ie Island

Yomitan Village

Kadena Town

Uruma City

Nakagusuku-Port

Okinawa Expressway andNaha Airport motorway

Onna Village

Kin Town

Ginoza Village

Nago City

Motobu Town

Nakijin Village

Ohgimi VillageHigashi Village

Kunigami Village

Naha Airport

Naha Port

Ishigaki CityMiyakojima City

Kadena Rotary

Toguchi

Goya

Chibana Akamichi

KawataKoza Crossing

Okinawa City

Nakagusuku-Port

Okinawa minami IC

Kitanakagusuku IC

Okinawa kita IC329

36

330Okinawa IT Shinryo Park

Kokutai-doro Entrance

Before Use of Tax System After Use of Tax System

Image of Tax Reduction When Using the Corporate Tax System

After Use of Tax SystemBefore Use of Tax System

Tax is reduced by￥1,150,000!

⇒Tax is reduced by ￥1,150,000 !!

Special Information and Communications Industry Zones

Special Zones for the Promotion of Economic and FinancialRevitalization (Special Economic and Financial Zones)

【Traffic access】About 15 minutes from Okinawa-kita Interchange on Okinawa Expressway

Locations of Regions/Special ZonesDesignated Information and Communications Industry Development Zones(Total of 24 municipalities)

Designated Special Information and Communications Industry Development Zones(5 cities/villages)

Designated Special Economic and Financial Zone(1 city)

￥12,000,000

Corporatetax amount￥3,840,000

Income￥9,000,000

Corporate tax amount￥2,880,000

Income deduction￥3,000,000

Tax reduction amount￥960,000

※Deemed to have fulfilled other conditions.

●Total number of company employees: 8●Of which is the number of employees in the special zone: 5

●Income deduction amount： ￥3,000,000 （￥12,000,000 × 40% × 5/8）⇒Corporate tax amount after using the tax system：approx. ￥2,880,000 （（￥12,000,000 － ￥3,000,000）×32％）

⇒Tax is reduced by ￥960,000 !!

●Income amount： ￥12,000,000　●Corporate tax amount： ￥3,840,000※Corporate tax rate (national tax ＋ local tax) is calculated as 32%.

⇒Corporate tax after using deduction： approx. ￥1,730,000 （（￥12,000,000－￥4,800,000）×24％）

Income

●Income deduction amount：　　 ￥12,000,000 × 40% ＝ ￥4,800,000

《When Using the Income Deduction》（Company A） 《When Using the Income Deduction》（Company A）

●Income amount： ￥12,000,000●Corporate tax amount： ￥2,880,000※Corporate tax rate is assumed to be 24%.

Tax is reduced by￥960,000!

Tax reductionamount

￥1,150,000

Corporatetax amount￥1,730,000

Corporatetax amount￥2,880,000

Preferential Tax Treatm

ent

14

BusinessTaxes

FixedAsset Tax

Property Tax（Naha City only）

Information and Communications Industry Development Zones

Purpose of the System

Target Zones

EligibleBusinesses

Business certification

(Special Economic and Financial Zones)

Special Zones for the Promotion of Economic and Financial Revitalization

Special Information and Communications Industry ZonesAccumulation and enhancement of information and communication-related industries

Accumulation of specific information and communication businesses that will play a leading role in the accumulation of information and communication-related industries

Accumulation of fundamental businesses related directly to the actual economy and the financial industry in order to revitalize the economy and finances

Naha City, Uruma City, Ginowan City, Miyakojima City, Ishigaki City, Urasoe City, Nago City, Itoman City, Okinawa City, Motobu Town, Yomitan Village, Kadena Town, Chatan Town, Kitanakagusuku Village, Nakagusuku Village, Nishihara Town, Tomigusuku City, Yaese Town, Yonabaru Town, Haebaru Town, Ginoza Village, Nanjo City, Onna Village, Kin Town

Naha and Urasoe Districts (Naha City and Urasoe City)Nago and Ginoza Districts (Nago City and Ginoza Village)Uruma Districts (Uruma City)

Entire city of Nago

Manufacturers of pre-recorded media, Telecommunications businesses, Movie/broadcast program production business, Broadcasting businesses, Software developers, Information processing businesses and service providers, Service businesses associated with the internet, Businesses that utilize information and communications technology

A corporation that has filed a blue form tax return and installed or expanded depreciable assets for the use of information and communications services in the Information and Communication Industry Development Zones on either of the following cost scales.

A corporation that has installed or expanded depreciable assets costing in excess of ￥10,000,000 for the use of information and communications services will be exempt from business tax related to the installation/expansion (for five years).

Real EstateAcquisition Tax

A corporation that has acquired land or buildings costing in excess of ￥10,000,000 for the use of information and communications services will be exempt from real estate acquisition tax.

①In cases where the cost of buildings exceeds ￥10,000,000 and installation or expansion is carried out, 8% of the acquisition cost is deducted from the corporate tax amount.②In cases where the cost of specific equipment/fixtures exceeds 　￥1,000,000 and installation or expansion is carried out, 15% of the acquisition cost is deducted from the corporate tax amount.

A corporation filing the blue tax return that has depreciable assets costing in excess of ￥10,000,000 for the use of information and communications services, or which has newly installed machines, devices, apparatus, or equipment costing in excess of ￥1,000,000 for the use of information and communications services, will be exempt from property tax on land, buildings, machinery/devices included in the relevant assets (for five years).

A corporation that newly constructs buildings for the use of information and communications services at a cost exceeding ￥100,000,000 with machinery costing in excess of ￥10,000,000, will have their business office tax halved for the relevant floor area (for five years).

Data Centers, Internet Service Providers, Internet Exchange, Back-up Centers, Security Centers, Assessment of IT Equipment Connection, ※Included in all business activities shown on the left.

Business related to the Financial Industry, IT-related Industry, Tourism-related Industry, Agriculture, Fishery, Manufacturers, Natural Science Research Institutes, Law firms, patent offices, Certified public accountants, Certified tax accountants, Management consulting businesses

Local tax

Prefectural TaxMunicipal Tax

②Corporate Income Tax(Tax deduction on investments)

③Corporate Income Tax(Extraordinary depreciation)

④Income Tax(The Angel Investors

Taxation Deduction Scheme)

National Tax

Not required

―

― ―

― ―

Certified by the Prefectural Governor Certified by the Prefectural Governor

Same as on the left. Same as on the left.

Same as on the left. Same as on the left.

Same as on the left. Same as on the left.

Same as on the left. Same as on the left.

Same as on the left. ―

An amount equivalent to “corporate income of a specific information and communication business operating in the Information and Communication Industry Development Zones (Special IT Zones) x 40%” will be included under deductible expenses (for 10 years after the date of the corporation's establishment).※Organizations must choose between this exemption and the information and communication development zone investment tax credits.

An amount equivalent to "corporate income x 40% x number of full-time employees in the special economic and financial zones/number of full-time employees of the corporation” will be included under deductible expenses (for 10 years after the date of the corporation's establishment).※Organizations must choose between this exemption and the information and communication development zone investment tax credits/special depreciation.

A corporation that has filed a blue form tax return and installed or expanded depreciable assets for the use of information and communications services in the Special Economic and Financial Zones on either of the following cost scales.

Preferential treatment for individuals invested in entitled corporations that have been approved by the Prefectural Governor

①In cases where the cost of buildings exceeds 　￥10,000,000 and installation or expansion is carried out, 25% of the acquisition cost will be included in special depreciation.②In cases where the cost of specific equipment/fixtures exceeds ￥1,000,000 and installation or expansion is carried out, 50% of the acquisition cost will be included in special depreciation.

Overview of the Regions/Special Zones System

One-stop Consultation Office for using the Okinawa Special Zone/Local Tax system

Okinawa Industry Promotion Public Corporation

※Please contact the Consultation Office in advance if you desire a consultation.

+81-98-894-6377+81-98-894-6377 E-Mail okitoku@okinawa-ric.or.jp

URL　https://www.zei-tokku.okinawa/Consultation services with a tax accountant is available

every Friday (afternoons)

※For further information on the taxation system, including tax standards, please contact a tax official at the national, prefectural or municipal level as appropriate.

15.8

Special IT Zone/Special Finance Zone

17.0

29.74

General Areas

40

30

20

10

0

Tax rate（％）

General AreasInitial 5 years6-10 years

※Described tax rates are the values in case exemptions, are fully received.

Comparison of Effective Corporate Income Tax Rates Between Special IT Zones/Special Finance Zone

and Other General Areas

※Building: “Building” in the Annexed Table 1 of the Ministerial Ordinance related to durable years of depreciable assets※Equipment attached to buildings: “Equipment attached to buildings” in the Annexed Table 1 of the Ministerial Ordinance related to durable years of depreciable assets※Machine, device: “Machine and device” in the Annexed Table 2 of the Ministerial Ordinance related to durable years of depreciable assets※Specified equipment and fixtures:Computers, server, digital switching equipment (PBX), digital button phone equipment, IC card equipment

①Corporate Income Tax(Tax deduction oncorporate income)※Business certification required

15

WITZ Okinawa Co., Ltd.

Assessment of IT Equipment Connection

Date of Certification:March 27,2019

AXEL NETWORKS, INC.

Data Ｃenter

Date of Certification:March 26,2018

U-Mark Co., Ltd.

Assessment of IT Equipment Connection

Date of Certification:November 5,2015

OKIT Corporation

Internet Service Providers

Date of Certification:February 3, 2015

Eligible Businesses

○Manufacturers of pre-recorded media (excluding printed media such as newspapers, books, etc.)Primarily businesses that manufacture pre-recorded media.[Example] DVD/CD press business, etc.

※Select among “① tax deduction on corporate income,” and“② tax deduction on investments,”

○Telecommunications businessesPrimarily businesses that transmit information, including ideas or factual information by means of fixed line, wireless or other electronic communication methods, and install and operate hardware to send and/or receive information.[Example] Cellular phone/PHS business, fixed-line phone business, ISP (internet service provider)/ 　　　　 IX (Internet exchange) business, IDC (Internet data center) business, etc.

○Software developersBusinesses that are contracted by clients to write computer programs or to research, analyze and provide advice on the development of such software; businesses that are contracted by clients to develop software packages or research, analyze, and provide advice on the development of such software packages.[Example] Contracted software development business (contracted development, 　　　　 installation, packages, and games), software development consultation, etc.

○Businesses that produce movies, programs for broadcast, 　or other works consisting of recorded images or audio

《Business Content》《Business Content》《Business Content》《Business Content》

● Introduction to Certified Businesses ●

Special Information and Communications Industry Zones

①Data Centers　②Internet Service Providers　③Internet Exchange④Back-up Centers　⑤Security Centers⑥Assessment of IT Equipment Connection

Information and Communications Industry Development Zones

○Businesses that utilize information and 　communications technologyBusinesses that are not a part of the information and communications industry, that provide product or service information through the use of information and communications technology, and other businesses defined by other government ordinances.[Example] Call center, BPO center (excluding in-house operations)

○Information processing businesses and　service providersContracted computer data processing services (including client-operated services); businesses that provide data entry services (data processing service); businesses that collect, process, and accumulate a variety of data and convert it into information for clients (information provision services); and businesses that provide information that is not classified as market research or public opinion research(other information services).[Example] Data entry business, contracted calculation service, database service, etc.

○Service businesses associated with the internetBusinesses that mainly provide information, via the Internet and that are not classified in the other categories. [Example] Web-based information search service, online shopping business, online 　　　 　 auction business,ASR (Application Service Provider), web content provider, 　　　　 digital certificate service, information network security service, etc.※Businesses that aim to provide advertisements and that offer the use of functions 　such as servers, mainly for other businesses, are not included in this classification.

②Corporate Income Tax

(Investment Tax Credit)

BusinessTaxes

Real EstateAcquisition Tax

FixedAsset Tax

Office Tax（Naha City only）

Organizations that have filed a blue form tax return and have newly established or expanded information and communication facilities, and for which ①the total cost of acquiring depreciable assets exceeds　 ¥10,000,000; or②the total cost of acquiring machinery and specific equipment and fixtures exceeds ¥1,000,000.

Organizations that have newly established or expanded information and communications facilities at a cost of more than ¥10,000,000 in the Information and Communication Industry Development Zones.

15% of the acquisition cost of machinery/devices or specific tools/equipment and 8% of the acquisition cost of buildings/accompanying facilities or structures is deducted from corporate tax.Maximum: Limited to a total cost of ¥2,000,000,000. The deduction is limited to 20% of corporate income tax (carried forward over four years).

An amount equivalent to 40% of the income of a corporation that has been certified within the special economic and financial zones will be included under deductible expenses (for 10 years after the date of the corporation's establishment) ※Organizations must choose between this exemption and the information and communication development zone investment tax credits.

※Accompanying equipment for the building in target are limited to those acquired at the same time as the building.

※Please note that exemptions do not apply to the sections of the above buildings and land that are not used for information and communications services.

Organizations that have newly established or expanded information and communication facilities in the targeted districts and fall under the categories listed below: Five-year tax exemption from fixed asset taxes on land, buildings, and

depreciable property that has been newly constructed or expanded.

Legal entities that established a new building, with more than ¥10,000,000 of machinery, etc. and more than ￥100,000,000 are subject to the Naha information and communications business.

Office taxes on business operations In determining the office tax, office floor space at the end of the fiscal year subject to tax (asset ratio) will be halved when calculated with the total fiscal year employee wages (employee ratio) for five years.

Business tax on the new installation or an expansion of corporate facilities will be exempted.(for 5 years).

①Acquisition of buildings for the use of information and communications services②A section of the land is used for the above building　

National Tax

Local tax

Prefectural TaxMunicipal Tax

①Facilities whose total cost of acquiring depreciable assets exceeds ¥10,000,000; or②Facilities whose total cost of acquiring machinery, specific equipment and fixtures exceeds ¥1,000,000.

Information and Communications Industry Development Zones/Special Information and Communications Industry Zones

Tax Type Eligibility Conditions Summary of Tax Incentives

Requirements

for Eligibility

①Corporate Income Tax(Tax deduction oncorporate income)

An entity that has been established in a special economic and financial zone on or after May 24th 2012 is registered for a blue tax form, return and is certified as a corporation.

①The place of business (store/office) must be in the special 　economic and financial zone②Must be engaged solely in the entitled businesses③Must have five or more full-time employees

○Broadcasting businesses　 (including wired broadcasting businesses)Businesses that broadcast (or rebroadcast) content using wireless or wired telecommunications facilities to be viewed directly by the public.[Example] TV/radio broadcasting businesses (including wired broadcasting business)

Primarily businesses that produce movies, businesses that both produce and distribute movies,and video production businesses that produce recorded media or creative works on videotape.[Example] TV/radio program production business, animation business and their 　　　　 distributions, movie film development business, etc.

Preferential Tax Treatm

ent

16

Eligible Businesses （Specified Industries for Economic and Financial Promotion）

※Select among “① tax deduction on corporate income,” “② tax deduction on investments,” and “③ extraordinary depreciation”

● Introduction to Certified Businesses ●

E-State Lab Co., Ltd.

Information Processing Service

Date of Certification：April 8, 2019

《Business Content》 《Business Content》 《Business Content》 《Business Content》

Spring Knowledge Lab Inc.

Development and maintenance, etc., of system and applications required for financial instrument exchanges

Date of Certification：March 28, 2016

Sense Of Wonder Group, Inc.

development of smartphone applications and games, business system development

Date of Certification：March 31, 2015

Shine Artist Investment, Inc.

asset finance

Date of Certification：September 18, 2014

Tax Type

①Corporate Income Tax

(Tax deduction oncorporate income)

Business TaxReal Estate

Acquisition Tax

Eligibility Conditions Summary of Tax IncentivesAn entity that has been established in a special economic and financial zone on or after April 10th 2014 is registered for a blue tax form, return and is certified as a corporation.

A corporation that has expanded its entitled industrial facilities in the special economic and financial zones at costs exceeding ¥10,000,000

An amount equivalent to “income of the relevant corporation × 40% × rate of employees in the special economic and financial zones” will be included under deductible expenses.

※Rate of employees in the special economic and financial zones = Number of 　employees in the special economic and financial zones/ Number of all employees※Application period: 10 years from the date of establishment

Business tax on the new installation or expansion of such facilities will be exempted for the five-year period from the date of the new installation or expansion.

Deduction of real estate acquisition tax on the building and land used for the entitled industry

National Tax

Local tax

Prefectural Tax

PropertyTax

A corporation that has filed a blue form tax return and has expanded the below-listed entitled industrial facilities in the special economic and financial zones, and①the total cost of acquiring depreciable assets exceeds ¥10,000,000; or ②the total cost of acquiring machinery and specific equipment and fixtures exceeds ¥1,000,000.

Property tax on land, buildings, and depreciable assets that have been newly acquired/constructed or expanded for use in operating eligible industry will be exempted for a period of five years.

City Tax

②Corporate Income Tax(Tax deduction on investments)

③Corporate Income Tax(Extraordinary depreciation)

④Income Tax(The Angel Investors Taxation Deduction Scheme)

A corporation that has filed a blue form tax return and has expanded the below-listed entitled industrial facilities in the special economic and financial zones, and

A corporation approved by the governor as meeting the requirements listed below

①the total cost of acquiring depreciable assets exceeds ¥10,000,000; or ②the total cost of acquiring machinery and specific equipment and fixtures exceeds ¥1,000,000.

An amount equivalent to 15% of the acquisition costs of machinery, and specified equipment and fixtures, and 8% of the acquisition costs of building and ancillary equipment will be deducted from corporate income tax.※Maximum acquisition costs: ¥2,000,000,000※Maximum deduction from taxable income: 20% of corporate income tax (Any excess deduction can be carried over for up to 4 years.)

Preferential treatment for individuals invested in the entitled corporations1. The first year of investment into the designated corporation (Select from ① and ②.)　① Deduct the amount of “invested amount minus ¥2,000” from the total income　② Deduct the invested amount from other capital gains2. The year shares of designated corporation are sold　Include the loss generated by selling shares in other capital gains (Any excess deduction can be carried over for up to 3 years.)

※Easing of requirements for the regular Angel taxation scheme (No requirements for the number of researchers or deficits)

An amount equivalent to 50% of the acquisition costs of machinery, and specified equipment and fixtures, and 25% of the acquisition costs of building and ancillary equipment will be included in special depreciation※Maximum acquisition costs: ¥2,000,000,000

①The place of business (store/office) must be in the special 　economic and financial zone②Must be engaged in one of the entitled businesses③Must have five or more full-time employees④Must have business plans that are approved as being appropriate

Requirements

for Eligibility

①Approval from the governor for tax deduction on corporate income② Must be a mid- or small-size business③ Must be an unregistered/ unlisted stock company④ Must not be part of a large corporation or its subsidiaries

○Business related to the Financial Industry ○IT-related IndustryTargeted businesses in the Special IT Zones①Banking businesses, mutual financing businesses, or projects undertaken by the Shoko Chukin Bank or

Development Bank of Japan.②Businesses operated by agricultural and forestry central banks, credit unions (shinkin banks), federations of shinkin banks, credit cooperative associations, federations of credit cooperative associations, labor credit associations, or federations of labor credit associations.③Credit businesses or mutual aid programs conducted by agricultural cooperative associations, federations of agricultural cooperative associations, fishery cooperative associations, federations of fishery cooperative associations, seafood processing cooperative associations, federations of seafood processing cooperative associations, or mutual insurance federations of fishery cooperative associations.④Money lending businesses, credit card businesses, installment finance businesses, housing finance businesses, or securities finance businesses.⑤Financial instruments business or defined contribution pension plan administration. ⑥Trust businesses, or trust contract agency businesses⑦Call loan businesses, or businesses conducted by the Financial Instruments Exchange.⑧Life insurance businesses, property and casualty insurance businesses, insurance intermediary businesses, or insurance agency businesses.⑨Businesses associated with computation or other computer-related administrative work for financial products and services (including the design, repair, and maintenance of systems operational with computers; or the design, preparation, sales, or repair and maintenance of programs for such systems).⑩Businesses associated with making referrals, giving advice, providing information, or soliciting sales concerning financial products and services.⑪Businesses associated with creating, editing, storing, dispatching, or delivering documents, vouchers, or other written materials relating to financial products and services.⑫Businesses associated with organizing cash, checks, promissory notes, or securities and verifying or storing the amounts or number of such cash or valuable items.⑬Businesses associated with the installation or operation of facilities related to the above-mentioned businesses, or businesses associated with supporting the individuals operating or planning to operate the bove-mentioned businesses.⑭Businesses associated with screening for listing eligibility entrusted by financial instruments exchanges.

○Manufacturing Industry① Manufacturers　② Natural Science Research Institutes③ Law firms, patent offices④ Certified public accountants, certified tax accountants⑤ Management consulting businesses

① Agriculture businesses② Fishery and aquaculture businesses

○Tourism-related Industry① Accommodations businesses　 (hotels,etc.)② Entertainment industry businesses

○Agriculture, Fishery, and Aquaculture Businesses

Requirements

for Eligibility

Special Zones for the Promotion of Economic and Financial Revitalization (Special Economic and Financial Zones)

17

Hong Kong

Singapore

Asia

①Operation

②Backup

③Delivery service

①Operation

②Backup

③Delivery service

JapanＣｌｏｕｄ

Data backupOperation base

Transmission of images, videos, games, etc.

Utilization image

(Submarine Optical Cable)

OkinawaOkinawaPublic-built private-operatedcloud data center

Okinawa Information andCommunication Center

Okinawa Cloud NetworkMetropolitanDistrict

Realization of high-speed, large-volume, low-cost

communications networks

Major data centers in Okinawa, Okinawa IT Shinryo Park, and other major facilities are connected in a ring by high-speed optical lines

Okinawa International Informationand Communications Network

Okinawa Prefecture maintains a government-private collaborative cloud environment as one package. Comprised of the Okinawa International Information and Communication Network (optical submarine cable), which directly connects the Tokyo Metropolitan area, Okinawa, and Asia. The Okinawa Cloud Network, which interconnects major data centers within Okinawa; and public-built, private-operated cloud data centers. Support for reducing communications costs between Okinawa and mainland Japan is also provided. By providing this high-level information and communications base, Okinawa is providing an environment that generates bidirectional business with Asia in addition to high added-value services applying practical-use technology such as cloud computing and big data.

○Use as a New Operations Base

What can be achieved using Okinawa's cloud environment

By basing business data management and system operations in Okinawa using data centers and the Okinawa Cloud Network, operations on par with the Tokyo Metropolitan Area are possible.

○Provision of Remote Backup ServicesIn Okinawa, which is at low risk for simultaneous disasters, services supporting business data management can be provided as DR (Disaster Restoration) hot sites from the perspective of DR and BCP (Business Continuity Plans).

○Provision of Content Delivery ServicesThe Tokyo Metropolitan area, Okinawa, and Asia are directly connected, making it possible to deliver large-volume data̶images, videos, games, etc.̶bidirectionally between Okinawa and the Tokyo Metropolitan area/Asia.

International Information and Communication Hub Connecting Japan and Asia

IT・金融の戦略拠点

Hub C

enter for Financial and IT

18

This telecommunications network connects major data centers in Okinawa and major bases, including Okinawa IT Shinryo Park, via high-speed optical lines, ensuring high potential and redundancy. The Okinawa Cloud Network Utilization Promotion Subsidy program partially subsidizes costs during the initial period of use.

（1）Subsidy rate　■within half of subsidized expenses（2）Upper limit　■Business operators in Okinawa：￥5,000,000　　　　　　　 ■ISP, IX, data center operators：￥10,000,000

《Okinawa Cloud Network Utilization Promotion Subsidy program》

AP

AP

APAP

AP

Line construction costs

Housing costs

System construction costs

Costs borne by users

Relocation costs

Initial usage period costs

Okinawa Cloud Network

Okinawa International Information and Communications Network

※The above are references prices. For detailed information, please contact the address provided below.

Okinawa Information and Communication Center

Completed in 2015 as a backup and risk-dispersion base for information assets, this facility is Okinawa’s newest public-built private-operated could data center. Located 41.4m above sea level, the center provides a staple power supply through: duel-system (redundant routing substations), electrify receipt, UPS redundancy, and emergency-use power generation equipment (60 hours of operation with reserve fuel 200 hours of operation with additional fuel). the facility’s quake-absorbing structure, which reduces the impact on buildings when an earthquake occurs guaranteeing a high level of safety.

Partial support is provided for VPN services supplied by private telecommunications operators and communication costs for Okinawa International Information and Communications Network overseas backup lines.

《FRT Data Centers》 《Ginoza Server Farm》 《Nago Mirai No.2》

First Riding Technology NTT Business Solutions Co., Ltd.Quarry Site Technologies Quarry Site Technologies

《Major data centers in the prefecture》

The Okinawa International Information and Communication Network (optical submarine cable) is a broadband dedicated-line service connecting Okinawa directly with Asia and the Tokyo Metropolitan area. It provides a high-speed, large-volume, low-cost communication network, achieving a reduction in communion costs between Okinawa and the Tokyo Metropolitan area and Asia, which had been an issue.

※Application is required to use the network.Cost Plan（examples)

Major DC in Okinawa Prefecture Tokyo DCHong Kong DC／Singapore DC

（Submarine Optical Cable）

Okinawa International Information and Communications (IT) Network

（Submarine Optical Cable）

Okinawa International Information and Communications (IT) Network

Monthly fee (tax not included) 1Gbps： ￥320,000　 10Gbps： ￥720,000■Okinawa － Tokyo

Monthly fee (tax not included) 1Gbps： ￥300,000　 10Gbps： ￥500,000■Okinawa － Hong Kong

Monthly fee (tax not included) 1Gbps： ￥500,000　 10Gbps： ￥1,400,000■Okinawa － Singapore

TEL.+81-98-953-8154 URL https://isc-okinawa.org/【Contact】 IT Innovation and Strategy Center Okinawa （ISCO）

Assistance with Communication Costs(Information and Communication Cost Reduction Support Project)

（1）Criteria for Eligibility ■Companies located in Okinawa for 3 years or less (from time of application): employment of 3 or more new recruits from within Okinawa Prefecture (full-time employees)■Companies located in Okinawa for more than 3 years: employment of 5 or more new recruits from within Okinawa Prefecture (full-time employees)

（2）Subsidized expense ■Assistance of up to half of monthly usage fees (up to two-thirds for remote islands) is provided.■Upper limit: ￥15,000,000/per company

【Contact】

Normal communication path

Redundancy in Okinawa Cloud Network

ＤＣ

ＤＣ

Failure occurrence

Automatically switches data centers in event of failure

【Okinawa International Information and Communications Network】

【Okinawa Cloud Network】

NTT Communications Corporation

Okinawa Cross Head Co., Ltd.

【Okinawa Information and Communication Center】 OCC CORPORATION

E-mail　nttcom-okinawa-ase@ntt.com　 　URL https://www.ntt.com/business/lp/ognet.html

E-mail　sales@och.co.jp

TEL.+81-98-866-2503

TEL.+81-98-982-6677

TEL.+81-98-860-0203（main）

Okinawa Information and Communication Center (DC) Management and Operation Consortium

【Okinawa Cloud Network Utilization Promotion Subsidy program】

TEL.+81-98-876-1171（main）

Information Industry Promotion Division, Department of Commerce and Labor Industry, Okinawa Prefecture

（Domestic）TEL.+81-3-6700-5406　 （Overseas）TEL.+81-3-6700-9123

SoftBank Corp. E-mail　SBTMGRP－OKINAWA-ASE＠g.softbank.co.jp

19

7

2

43

1

5

6

89

Order-made rental offices that can be used as if your company owned the building (keeping down initial investment costs)

⑶ Construction of industry accumulation facility

⑹ Start of tenancy / businessTenant IT company

Private businesses（developer）

Industry Composition Facility

⑤ Industry Composition Facility No.1 Opened for public use in June 2012

⑥ Industry Composition Facility No.2 Opened for public use in August 2014

⑦ Industry Composition Facility No.3 Opened for public use in April 2015

⑧ Industry Composition Facility No.4 Opened for public use in June 2018

⑧ Industry Composition Facility No.5 Opened for public use in March 2019

Access map

【Traffic access】About 15 minutes from Okinawa-kita Interchange on Okinawa Expressway

Kadena Rotary

Toguchi

Goya

Chibana Akamichi

KawataKoza Crossing

Okinawa City

Nakagusuku-Port

Okinawa minami IC

Kitanakagusuku IC

Okinawa kita IC329

36

330Okinawa IT Shinryo Park

Kokutai-doro Entrance

IT Shinryo Park: Basic Principles

What is the Okinawa IT Shinryo Park?

❶Promote the development of the information and communications industry in Okinawa Prefecture❷Contribute to improved international competitiveness and stimulate the information and communications industry in Japan❸Lead in the creation of employment opportunities in Okinawa Prefecture

IT Shinryo Park: Functions❶Serve as a hub for new IT industries　(advanced software development)❷Serve as an IT bridge (IT Shinryo) connecting Japan and Asia❸Provide a test bed for the IT industry❹Support and drive the integration and creation of specialized IT personnel necessary for Japan and Asia❺Provide a superior IT work environment and resort

Bridging Japan and Asia Okinawa IT Shinryo Park

With its name “Shinryo” meaning the bridge to Asia, Okinawa’s IT Shinryo Park is a large scale project with the aim of making Okinawa prefecture is an important hub of information and communication-related industries both at home and abroad.

Industry Composition Facility No.6（Scheduled to be completed in 2020）Asia IT Business Center

（Scheduled to be completed in 2020）

Convenience facilities (hotel/childcare facilities etc.)(Planned construction site)

⑴ Apply for tenancy

⑸ Permission　 for Use

Okinawa PrefecturalGovernment

⑵ Lease company Initial public offering / contracts ⑷ Long term

lease (15years)

Hub C

enter for Financial and IT

20

※As of June 30,2019

Okinawa IT Shinryo Park Tenant Companies

Okinawa Software Center Co., Ltd.

OKINAWA CROSS HEAD Co., Ltd.

Fujitsu Learning Media Okinawa Limited

Lexues Co.,Ltd.

Digital Design Services Co.,

WITZ Okinawa Co., Ltd.

UBiQ System Co., Ltd.

①Core Function　Support Facility

Okinawa Hi-Think Corporation

VERISERVE OKINAWA TEST CENTER CORPORATION

NEC VALWAY, Ltd

②Center for the Promotion of Busine