Hello! This is Legal Gate Immigration Lawyer Office in Oita Prefecture (Oita VISA Support Center).<\/p>\n
We often receive inquiries from foreign nationals who have worked hard in Japan for several years and are about to return to their home country: “What happens to the expensive pension contributions deducted from my salary every month once I go home?” “I heard I can get it back\u2014is that true?”<\/p>\n
To get straight to the point: if you meet certain conditions, you can receive a portion of the pension contributions you paid through a system called the “Lump-sum Withdrawal Payment” (dattai ichijikin)!<\/p>\n
However, this system also has little-known pitfalls, such as “you will not get the full amount back” and “if you plan to return to Japan in the future, there are cases where it is better not to claim it.” This time, we will clearly explain the basic rules of the Lump-sum Withdrawal Payment and the easily overlooked points to watch out for, from an expert’s perspective.<\/p>\n
The Lump-sum Withdrawal Payment can be claimed by foreign nationals who meet all<\/b> of the following four conditions.<\/p>\n Not holding Japanese nationality<\/b> (being a foreign national)<\/p>\n<\/li>\n Having paid National Pension or Employees’ Pension insurance premiums for “6 months or more”<\/b><\/p>\n<\/li>\n Not having an address in Japan<\/b> (*having submitted a “moving-out notification” at the city hall and returned home)<\/p>\n<\/li>\n Never having received a pension such as a disability pension<\/b><\/p>\n<\/li>\n<\/ul>\n The usual flow is to complete the moving-out procedure at the city hall before returning home, and then make the claim after leaving Japan. Also, as of the time of this blog post,<\/p>\n This is where things get very important. Regarding the Lump-sum Withdrawal Payment, incorrect rumors often spread among foreign nationals, so let’s firmly confirm the reality and the facts.<\/p>\n \u27a1 Reality: The full amount will not be returned. Also, the cap is “5 years’ worth (60 months).”<\/b> The Lump-sum Withdrawal Payment is not a refund of the total amount you paid as-is; the amount is determined based on a calculation formula set by the government. In addition, the 2021 legal amendment raised the cap to “5 years’ worth,” but conversely this means that “even if you work in Japan for 10 years and then return home, only 5 years’ worth will be counted.” Note that the cap is scheduled to be raised to 8 years in line with the start of the Employment for Skill Development (Ikusei Shuro) system.<\/p>\n \u27a1 Reality: The absolute deadline is “within 2 years” of leaving Japan (of losing your address here).<\/b> If you put it off thinking “I’ll do it once I’ve settled in back home” and exceed the 2 years by even a single day, you will not be able to receive a single yen.<\/p>\n \u27a1 Reality: If you want to obtain “permanent residence” after returning to Japan in the future, there are cases where it is better not to take it!<\/b> In fact, receiving the Lump-sum Withdrawal Payment carries a serious penalty: “the period (record) during which you paid pension contributions in Japan is reset to zero.” If in the future you re-enter Japan and try to apply for a “permanent residence visa,” you will have to build up your “record of public pension payments”\u2014a requirement for permanent residence\u2014all over again from scratch, putting permanent residence permission hopelessly out of reach. For those who think “I might work in Japan again,” deliberately not claiming it and keeping your pension record intact is also a powerful option.<\/p>\n Those who worked as company employees and paid into the “Employees’ Pension” face another major hurdle. That is, “approximately 20% income tax is withheld (withholding tax)” from the Lump-sum Withdrawal Payment that is transferred to you.<\/p>\n For example, if the calculated Lump-sum Withdrawal Payment is 500,000 yen, only about 400,000 yen will actually be transferred to you. To get back (receive a refund of) the 100,000 yen in tax that was deducted, the following procedures are essential.<\/p>\n Before returning home, register a friend or colleague living in Japan with the tax office as your “tax agent” (nozei kanrinin).<\/p>\n<\/li>\n After returning home, once approximately 80% of the Lump-sum Withdrawal Payment has been transferred to your account in your home country, mail the original “Notice of Decision on Payment of the Lump-sum Withdrawal Payment” enclosed with it to your tax agent in Japan.<\/p>\n<\/li>\n Your tax agent files a “final tax return” at the tax office in Japan and has the remaining 20% transferred to the tax agent’s account.<\/p>\n<\/li>\n Have the tax agent remit the money to your account in your home country.<\/p>\n<\/li>\n<\/ol>\n It takes considerable effort, but the amount is significant, so be sure to complete the procedure (appointing a tax agent) before returning home!<\/p>\n There are also many unscrupulous agency services, so please appoint your tax agent carefully.<\/p>\n “I have to leave Japan, but what should I do about my remaining period of stay?” “What preparations should I make now before returning home so that I can work in Japan again in the future?”<\/p>\n The specific calculation of the Lump-sum Withdrawal Payment itself and claiming it by proxy fall within the professional scope of pension offices, certified social insurance labor consultants, and tax accountants. However, if you have any concerns about the impact on your visa (status of residence) or about the legal procedures when returning home, please consult our office first. Where necessary, we also provide a smooth introduction to trusted specialists in other professional fields.<\/p>\n So that your hard work in Japan does not go to waste, we will support you thoroughly to the very end!<\/p>\n","protected":false},"excerpt":{"rendered":" [Essential Reading for Foreign…<\/p>\n","protected":false},"author":1,"featured_media":50,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24,25],"tags":[27,26],"class_list":["post-51","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-for-foreign-residents","category-life-in-japan","tag-pension","tag-pension-return"],"_links":{"self":[{"href":"https:\/\/visasapo.com\/en\/wp-json\/wp\/v2\/posts\/51","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/visasapo.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/visasapo.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/visasapo.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/visasapo.com\/en\/wp-json\/wp\/v2\/comments?post=51"}],"version-history":[{"count":0,"href":"https:\/\/visasapo.com\/en\/wp-json\/wp\/v2\/posts\/51\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/visasapo.com\/en\/wp-json\/wp\/v2\/media\/50"}],"wp:attachment":[{"href":"https:\/\/visasapo.com\/en\/wp-json\/wp\/v2\/media?parent=51"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/visasapo.com\/en\/wp-json\/wp\/v2\/categories?post=51"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/visasapo.com\/en\/wp-json\/wp\/v2\/tags?post=51"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n
\n2. [Important] Three “Common Misunderstandings” About the Lump-sum Withdrawal Payment<\/h3>\n
Misunderstanding \u2460: “The pension I paid will be returned in ‘full'”<\/h4>\n
Misunderstanding \u2461: “I can claim it any time I like”<\/h4>\n
Misunderstanding \u2462: “It’s definitely better to just take it anyway”<\/h4>\n
\n3. Employees’ Pension Has “20% Tax” Deducted!? How to Get It Back<\/h3>\n
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\nFeel free to consult us about return procedures, calculating pension refunds, and Lump-sum Withdrawal Payment procedures!<\/h3>\n