Lump-sum Withdrawal Payments

We are afraid that we do not accept inquiry regarding procedures for both Lump-sum Withdrawal Payments for Pention and Refund of Withholding Tax. Please contact Japan Pension Service (日本年金機構) or National Tax Office (税務署) for the details.

>> Japan Pension Service: Lump-sum Withdrawal Payments
>> National Tax Office

(Amended on April 1st, 2020)

Foreign nationals who have enrolled in the Japanese National Pension scheme can receive pension based on the amount and rate of payments by claiming Lump-sum Withdrawal Payments (the Payments) within 2 years after withdraw from the Pension scheme and moving out of Japan.

[NOTE] Sum-up of the period of pension contribution

If you have a period of enrolling in Pension Scheme in particular country which have agreement related to sum-up of the period of pension contribution with Japan, it is possible to sum up the period of pension contribution of each country under the specific circumstance.

Countries which have agreement related to sum-up of the period of pension contribution with Japan (as of July, 2019): Germany, United States of America, Belgium, France, Canada, Australia, Netherlands, Czech Republic, Spain, Ireland, Brazil,
Switzerland, Hungary, India, Luxembourg, the Philippines and Slovakia.

However, please note that the period of enrollment of the Japanese Pension scheme related to the payment will not be counted once you received the Payments.

You have the other option in case you have enrolled in the pension scheme for 10 years (120 months) or more.
In that case, you are eligible for receiving the Japanese Old-age Pension (老齢年金). You should consider whether you take the Payments or Old-age Pension according to the amount of pension benefits you will receive in the future.

You can find some basic information for the Payments below.
For further information or inquiry regarding the Payments or pension, please contact the Japan Pension Service or other specialist in the field of pension and insurance directly since we are not specialized in this field.

REQUIREMENT for the PAYMENTS

You need to satisfy all the items below:

  1. You are not a Japanese national.
  2. You have paid the contribution for 6 months or more under the Japanese Pension scheme.
  3. You have moved out of Japan already and no longer have a registered address in Japan.
  4. You have never been entitled to Japanese pension benefits including Disability Allowance (障害手当金).

METHOD of CALCULATION

Calculation Method of the Payments is different depending on the types of pension, National Pension or Welfare/Employee’s Pension (国民年金と厚生年金).
Basically, the amount of the Payments will be calculated based on the period of pension contribution up to 36 months even if you have enrolled in the scheme and have paid the contribution for 37 months or more.

Please note that all of the period you have enrolled in the Japanese Pension scheme before you claim the Payments will be invalid for future pension benefits once you receive the Payments.

The Payments will be sent to your bank account overseas in the specific currency designated by the Japan Pension Service.

Withholding income tax will be deducted.

In case of the Welfare/Employee’s Pension (厚生年金), the withholding income tax (20% of the Lump-sum Withdrawal Payments) will be deducted from the total amount of the payments when you receive the Payments. * This income tax is not levied in case of the National Pension (国民年金).

You can claim the tax refund after you receive the Payments.

After you receive the Lump-sum Withdrawal Payments, you can claim the tax refund by filing for tax return within 5 years commencing on January 1st of the following year. Basically, all the withholding income tax will be paid back to you if you don’t declare any other income except the Lump-sum Withdrawal Payments.

Please refer to the pages below for the details.
>> Refund of Withholding Tax related to Lump-sum Withdrawal Payments

REQUIRED DOCUMENTS

You can apply for the Payments to the Japan Pension Service by mail.

Basic required docuemnts are as follows:

  1. Photocopy of your passport:
    pages which can confirm your name, date of birth, nationality, signature, and status of residence etc.
  2. Documents to confirm your bank account:
    Certificate issued by the bank to certify you are the account holder, showing bank name, branch name, address of the branch, account number and account holder (must be your name).
  3. Pension Book (年金手帳) or documents to confirm your Pension Number (基礎年金番号).

We are afraid that we do not accept inquiry regarding procedures for both Lump-sum Withdrawal Payments for Pention and Refund of Withholding Tax. Please contact Japan Pension Service (日本年金機構) or National Tax Office (税務署) for the details.

>> Japan Pension Service: Lump-sum Withdrawal Payments
>> National Tax Office

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