Tax Representative Service & Pension Refund

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Approximately 5 minutes of work can mean hundreds of thousands of yen! Let us help you claim what is yours.

Expatriates who left jobs in Japan after 1994 may be eligible for a lump-sum withdrawal payment from the national insurance program. The lump-sum withdrawal payment is subject to a Japanese income tax of 20%, but that too may be reclaimed by utilizing our Pension Refund Filing Service. We are very sorry, however there is a 5 year statute of limitation to claim this tax refund. If you have received payment after 1999 we can still help you.

Please read below.
There are three sections to this file. Please read all parts carefully,
then email me with questions or to request Pension Refund Filing Service

  1. The pension refund itself (below)
  2. The additional 20% tax refund
  3. Frequently Asked Questions (FAQ)
If you are leaving Japan soon, you should visit your local Social Insurance
Office (Shakai Hoken Jimusho) or the National Pension Section of the municipal
office near you, and request the claim forms and multi-lingual brochure
for the Request of Arbitration for Lump-Sum Withdrawal Benefit. Ask for
the Dattai Ichijikin Saitei Seikyusho for the Kokumin Nenkin/Kosei
Nenkin. In some cases a quick telephone call to your ward office might
save you some time. (They have mailed this form to some people.)Welfare Pension Insurance
The Welfare Pension Insurance is an insurance which all working people should be enrolled, and when they get old and become unable to work, disabled or died, pension or lump sum money will be provided to the pensionary members.

(1) Enrollment
The business proprietor should submit the required documents to the competent social insurance office of the company.

(2) When you changed your address
The business proprietor should submit the required documents to the competent social insurance office of the company.

National Pension
The National Pension is a system that everyone aged 20 to 60 and living in Japan, including foreign residents is required to enroll to be insured for aging, disability and bereavement.
  • Enrollment
    To enroll in the National Pension, apply at the Insurance Section of your ward office by presenting your personal seal.  You will be required to pay the premiums.  Those who are "type 3 insured persons" should apply to the competent Social Insurance Office through the company where your spouse works.
  • When you change your address
    Please report your new address to the Insurance Section of your ward office by presenting your personal seal within 14 days from the date you changed your address.  Those who are "type 3 insured persons" should report to the competent Social Insurance Office through the company where your spouse works.
  • Basic Old Age Pension
    Those who have paid premiums for more than 25 years will receive Basic Old Age Pension.  Other types of pensions are Basic Pension for the Disabled and Basic Pension for the Bereaved.
Lump-Sum Withdrawals
Lump-sum Withdrawal Payments are granted, in principle, on request to persons who satisfy all of the following four conditions and have filed a claim within two years after leaving Japan.  The request form is available at Social Insurance Offices and City Hall (or ward office).  The conditions are as follows;
· Persons who do not possess Japanese citizenship.
· Persons who contributed to the National Pension or the Employees Pension Insurance premiums for at least 6 months.
· Persons who do not have a place of residence in Japan.
· Persons who have not qualified for pension benefits, (including the Disability Allowance) in the past.

(Documents to be attached)
·Pension notebook
·A copy of your passport with a sealing of departure from your home country.
·A copy of the documents to specify your bank account number.  (e.g. passbook)

Period of SubscriptionAmount of Lump-Sum Withdrawals
Welfare PensionNational Pension
From 6 months to 12 monthsAverage standard salary * 0.5¥ 39,900
From 12 months to 18monthsAverage standard salary * 1.0¥ 79,800
From 18 months to 24 monthsAverage standard salary * 1.5¥ 119,700
From 24 months to 30 monthsAverage standard salary * 2.0¥ 159,600
From 30 months to 36 monthsAverage standard salary * 2.5¥ 199,500
More than 36 monthsAverage standard salary * 3.0¥ 239,400
  • Benefit for the Aged Foreign Residents
    Of all foreign residents, those who were not qualified as recipient of the Basic Old Age Pension under the National Pension System will receive this benefit (¥10,000/month).

    An automatic 20% income tax will be withheld from this payment.
    See how to get that back with our Pension Refund Filing Service
Notes:
  1. When the lump-sum withdrawal payment has been accepted, the term corresponding to that amount shall cease to be considered as the pension enlistment period.
  2. If the applicant should die before receiving the lump sum withdrawal payment, a spouse, child, parent, grandchild, grandparent, or sibling living off the same income source, or considered a member of the same fiscal household as the applicant at the time of the applicant's death can receive payment in place of the applicant.
  3. Twenty percent (20%) income tax is withheld from the lump sum withdrawal payment for Employees' Welfare Pension Insurance at the time of payment.
    (Use our Pension Refund Filing Service to get this percentage back)
  4. Regardless of whether or not you receive the lump sum withdrawal payment for the Employees' Welfare Pension Insurance (Kosei nenkin hoken), you can also receive a specific amount for the period of time insurance payments are paid for the National Pension (kokumin nenkin) IF you have paid into the system.

Please note: This refund is administered by the Social Insurance Agency and is applicable to any non-Japanese citizen who has paid into the pension for six months or more. Thus, no organization is responsible for the decisions made by said agency, nor can they check on individual claims. If you have any questions about your claim please send them (in English or Japanese) to the following address:
Social Insurance Office Center
3-5-24 Takaido-nishi
Suginami-ku, Tokyo 168-0071
JAPAN

The additional 20% tax refund
Q. "What is this... they tax my Lump Sum Payment?"
A. Yes, but you can get it back.A flat-rate tax of 20% is levied on the Lump-Sum Withdrawal Payment. A person working for 3 years on the program who has made 36 months payments into the fund:Once you have received the Lump-Sum Withdrawal Payment you can apply to reclaim the tax. Applications must be made within 5 years of leaving Japan.

Q. How can I get this tax refund back?
You need to choose a tax representative, (that would be me if you choose our
Pension Refund Filing Service a person who is a resident in Japan. We will fill-in the required paperwork, claim the tax, collect it, and then send the funds to you in the manner easiest for you.

Q: I will be returning home after a long stay in Japan. I was working in Japan from 1990-1993 and I paid into the National Pension Scheme. Am I eligible to claim back the original payment?
A: The Pension Reform Bill was passed in the Diet on November 2, 1994, and became effective on November 9, 1994. In order to qualify to be considered for the Lump Sum Payment (the pension refund), you need to have been in Japan on or after 11/9/94, had a Japanese address on or after 11/9/94, have ALL of the following four conditions listed above.

Special Note:
There is no rule that you can not come back to Japan, work 1 month, pay the fee, and collect for the entire term. Many people I know have done this. Learn your rights.

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A related website with some information. Irish Net Nippon
answers a bit old, but still valid.

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