| We are afraid that we do not accept inquiry regarding procedures for both Lump-sum Withdrawal Payment for Pension 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 Payment >> National Tax Office |
（Amended on February 20th, 2023）
When you receive LUMP-SUM WITHDRAWAL PAYMENT, the withholding income tax (20.42% of the Lump-sum Withdrawal Payment) will be deducted from the total amount of the payments >> LUMP-SUM WITHDRAWAL PAYMENT
After you receive the LUMP-SUM WITHDRAWAL PAYMENT, you can claim the tax refund by filing for ”Tax Return for Refund due to Taxation on Retirement Income at the Taxpayer’s Option (退職所得の選択課税による還付のための申告書)” within 5 years commencing on January 1st of the following year of receipt of the LUMP-SUM WITHDRAWAL PAYMENT. The Tax Return must be submitted to the Tax Office (税務署) which has jurisdiction over your last address you registered in Japan. Basically, all the withholding income tax will be paid back to you in case you don’t have anything to declare except for the Lump-sum Withdrawal Payment.
However, the Tax Office only accepts a bank account in Japan for the refund. Generally, you don’t have any Japanese bank account any more after you move your residence outside Japan. In order to receive the tax refund, you need to appoint a resident in Japan to the 納税管理人 (Nozei Kanrinin; Appointed Tax Agent) who has a Japanese bank account and can receive your tax refund on your behalf.
To appoint a 納税管理人 (Nozei Kanrinin; Appointed Tax Agent), you need to submit a report called 所得税・消費税の納税管理人の届出書 (Shotoku-zei, Shouhi-zei no Nouzei-kanri-nin no Todokedesho) to the Tax office which has jurisdiction over your last address you registered in Japan. The report can be submitted before or after you leave Japan, or you can submit it at the same time of submitting the tax return. 納税管理人 (Nozei Kanrinin) can be an individual or a corporate entity, and any qualification is not required.
For futher details, you should contact the Tax Office directly or a tax accounting firm/specialist.
We can help you with the Refund of Withholding Tax as your Appointed Tax Agent (納税管理人) only in case you have already leave Japan and are currently living outside Japan and have received the Lump-sum Withdrawal Payments already. However, we are afraid that we don’t accept any inquiry by phone calls regarding the procedures for tax refund.
PROCESS
１．You receive the Lump-sum Withdrawal Payments
- You will receive a notice of 国民年金・厚生年金保険 脱退一時金送金通知書 (Notice of Entitlement: Your Lump-sum Withdrawal Payments) sent from the Japan Pension Service (日本年金機構). Soon after that, the net payment amount will be transferred to your bank account.
- Be sure to keep the original of 国民年金・厚生年金保険 脱退一時金送金通知書 (Notice of Entitlement: Your Lump-sum Withdrawal Payments). You will need to provide it to claim the tax return.
２．Prepare the documents to report your 納税管理人 (Nozei Kanrinin) and to file for the tax return.
- Appoint your Appointed Tax Agent (納税管理人/Nozei Kanrinin) and fill out the Report of the Appointed Tax Agent (所得税・消費税の納税管理人の届出書).
- Complete all the necessary tax return forms (page 1 – 3) and fill out the information on Appointed Tax Agent (納税管理人/Nozei Kanrinin).
３．Submit a report of 納税管理人 (Nozei Kanrinin) and tax return forms to the relevant Tax Office.
- Submit the documents within 5 year commencing from January 1st of the following year after receiving the Lump-sum Withdrawal Payments.
- You need to submit it to the Tax Office which has jurisdiction over the last address you have lived/registered in Japan.
- Attach the original of Notice of Entitlement: Your Lump-sum Withdrawal Payments (国民年金・厚生年金保険 脱退一時金送金通知書) along with the tax return forms.
４．Receipt of the Notice of Tax Refund and the money.
- Notice of Tax Refund (国税還付金振込通知書) will be delivered to the address of your Appointed Tax Agent (納税管理人/Nozei Kanrinin).
- The money will be sent to the bank account of your Appointed Tax Agent (納税管理人/Nozei Kanrinin) on the day stated on the notice.
- It will take around a few months to receive the Notice of Tax Refund after submission of the Tax Return.
５．Receipt of the money
You will receive the money for the tax refund through your Appointed Tax Agent (納税管理人/Nozei Kanrinin).
５．Dismiss your Appointed Tax Agent (納税管理人/Nozei Kanrinin)
After completing the process above, send the Dismissal of the Appointed Tax Agent (所得税・消費税の納税管理人の解任届出書) to the Tax Office to dismiss your Appointed Tax Agent (納税管理人/Nozei Kanrinin)