Lump-sum Pension and tax refund

How to Get Your Refunds

Disclaimer: We are not tax experts. The information contained in this website is for general information purposes only. The information is provided by current and former JETs and while we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website. Any reliance you place on such information is therefore strictly at your own risk.

All JETs pay into the Japanese Employee’s pension system during their time here, and after leaving are eligible to receive a portion of this money back. Former JETs are eligible for the 1) Lump-Sum Withdrawal Payment Pension and the 2) Lump-sum Withdrawal Payment Pension Tax Refund and in order to receive these, please follow the guideline below.

Guideline Download
1 Choose a tax representative

  • Supervisor
  • Coworker
  • Japanese friend
2 Fill out the “Declaration Naming a Person to Administer the Taxpayer’s Tax Affairs*” form (Shotoku zei shōhizei no nōzei kanrinin no todokede-sho) with your tax representative and bring it either to a Social Insurance Office or the Tax Division of your Municipal office. Form pdf
Instructions
3 Have the following before you leave Japan

  • Pension book (nenkin techo)
  • The “Application for the Lump-Sum Withdrawal Payments*” pension form.
pdf
4 In the past JETs were asked to turn in their Residency cards at immigration before final departure but that is no longer one of the process.  Your municipal city office should have it hole punched and you should be able to keep it as a souvenir!
5 After returning home, file for your Lump-sum Withdrawal Payment pension by sending the documents below:

  • Filled out Application for the Lump-sum Withdrawal Payments pension form.
  • Blue pension book.
  • Passport photocopies of the following information
    • Name
    • Date of birth
    • Nationality
    • Signature
    • Work visa
    • Date of final departure from Japan
  • Bank document such as a copy of your home country’s
    • Bank statement
    • Bank passbook
    • Verification document of your bank name, branch office, branch address, bank account number, and the full name of the account holder (must be your own)
6 After 3-6 months, you will receive the “Notice of the Lump-sum Withdrawal Payment Pension” in the mail and the payment ($/£) in your home country’s bank account.
7 Keep a copy of the “Notice of the Lump-sum Withdrawal Payment” and send the original to your Tax Representative.
8 Have your Tax Representative go to the same Tax Division of your Municipal Office and file your “Lump-sum Withdrawal Payment Pension Tax Refund*” (Kakuteishinkō-sho)
copy available only at Tax Office
9 After 3-12 months your Tax Representative will receive your pension tax refund in their bank account.
10 Have your Tax Representative send you your pension tax refund money via international wire transfer.

Important Points

  • The initial  Lump-sum Withdrawal Payment Pension is about 79.58% of your pension – after tax deductions.
  • The remaining 20.42% is returned when filing for the Lump-sum Withdrawal Payment Pension Tax Refund.
  • In order to receive both pension and refund, you MUST turn in your Alien registration card at the airport upon final departure from Japan.
  • Application for refunds must be made within 2 years of leaving Japan.
  • Both the Niigata PAs and CLAIR can answer general questions about the refunds however they do not handle the paperwork. For more details, please contact the designated tax office of your residence in Japan.

 

 

Period of Coverage Estimated amount refunded before tax*
6 – 11 months ¥140,000
12 – 17 months ¥280,000
18 – 23 months ¥420,000
24 – 29 months ¥560,000
30 – 35 months ¥700,000
over 36 months ¥840,000

*calculated on a monthly remuneration of ¥300,000

 


 

Updated as of October 2016