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Pension Refund
Procedure A
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Working After JET
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JET AA
Useful Links
General Safety
Medical Resources and Links
Disaster Preparedness
Emergency and Evacuation Resources
Emergency Supplies Checklist
Getting in Contact
Disaster Preparedness Handbook
Social Health Insurance
JET Accident Insurance
Mental Health
Sexual Health
Medication
Alcohol Abuse
Immigration
Status of Residence "Visa" (All 3rd Year JETs)
Travelling Abroad
Residence Administrative Procedures
Leaving JET Immigration Procedures
Important Documents
Money
Japanese Taxes
Home Country Taxes
Teaching Resources
Lesson Plans
Video Resources
Online Teaching Journals
Studying Japanese
Japanese Class
Self-Study
Category:
Kana
Kanji
Vocabulary
Grammar
Listening
Reading
Writing
Speaking
JLPT Prep
Resource Type:
Applications/Programs
Books
Websites
Leaving JETs
Important Documents
Immigration - Status of Residence "VISA"
Return Airfare
Moving Checklist
Shipping and Forwarding Services
Selling/Disposing Your Belongings
Sending Luggage to the Airport
Pension Refund
Procedure A
Procedure B
Working After JET
Reverse Culture Shock
JET AA
Useful Links
Pension Refund
NOTE: The following information is based on the 2023 GIH. Kyoto JETs assumes no responsibility for the accuracy of the information provided here.
NOTE: The following information is based on the 2023 GIH. Kyoto JETs assumes no responsibility for the accuracy of the information provided here.
Do you remember all of that money that you have been paying into the Japanese Pension System? Well, we have some good news for you! Foreign nationals who have been paying into the pension system are able to apply for a Lump-Sum Withdrawal Payment (aka pension refund) and get up to 60 months* of pension payments back if they meet the following criteria:
Requirements for Lump-sum Withdrawal and the Tax refund of Lump-sum Withdrawal
*The amount refunded is based on the number of months you’ve paid. It increases every COMPLETE 6 months of payments, up to 5 years.
Tax Refund on the Lump-Sum Withdrawal Payment: The Lump-Sum Withdrawal Payment is subjected to a 20% withholding tax, and this tax can be refunded to you with the help of a designated tax agent. In order to receive the refund, you must apply for the refund of the tax withheld within 5 years of the date you left Japan.
Estimated Amount Refunded
These are the estimated refund figures which correspond to the period of time you have worked as a JET.
**Please note that the actual amount refunded will vary according to your monthly remuneration and/or the premium rate you paid.**
Time on JET Lump Sum Tax Refund Total
Requirements for Lump-sum Withdrawal and the Tax refund of Lump-sum Withdrawal
- Send your "Lump-sum Withdrawal Payments" application within 2 years of leaving Japan
- You cannot possess Japanese citizenship
- You must have paid Employees` Pension Insurance premiums for at least 6 months
- You can have no place of residence in Japan (i.e. you have cancelled your status of residence- submitted a moving out form)
- You have never qualified for pension benefits (including Disability Allowance)
*The amount refunded is based on the number of months you’ve paid. It increases every COMPLETE 6 months of payments, up to 5 years.
- See the official Japanese Pension Service website to calculate your lump-sum amount: www.nenkin.go.jp/international/japanese-system/withdrawalpayment/payment.html
Tax Refund on the Lump-Sum Withdrawal Payment: The Lump-Sum Withdrawal Payment is subjected to a 20% withholding tax, and this tax can be refunded to you with the help of a designated tax agent. In order to receive the refund, you must apply for the refund of the tax withheld within 5 years of the date you left Japan.
Estimated Amount Refunded
These are the estimated refund figures which correspond to the period of time you have worked as a JET.
**Please note that the actual amount refunded will vary according to your monthly remuneration and/or the premium rate you paid.**
Time on JET Lump Sum Tax Refund Total
- 1 year 240,000 60,000 300,000
- 2 years 500,000 100,000 600,000
- 3 years 750,000 200,000 950,000
- 4 years 1,000,000 250,000 1,250,000
- 5 years 1,100,000 280,000 1,380,000
Pension Refund Procedure
("Lump-sum Withdrawal" &
"Tax Refund of Lump-sum Withdrawal")
The basic steps for the Pension Refund ("Lump-sum Withdrawal" & "Tax Refund of Lump-sum Withdrawal")
Before leaving Japan
Before leaving Japan
- Get the necessary forms.
- Designate a tax agent.
- Submit the Tax Agent Declaration form.
- Mail necessary forms to the Japan Pension Service to claim a refund.
- Receive Lump-sum Withdrawal payment into your overseas bank account.
- Mail the notice of refund to your tax agent in Japan (you will get a notice of refund after you receive the Lump-sum payment).
- Tax agent files for refund of tax on Lump-sum Withdrawal.
- Tax agent receives your tax refund.
- Tax agent transfers the money to you.
Detailed Instructions for Pension Refund
When you get the Lump-sum Withdrawal Payment, the Japanese government charges a 20% tax. The good news is that you can get this tax refunded. In order to get the full amount to which you are entitled, you must follow two separate procedures:
When you get the Lump-sum Withdrawal Payment, the Japanese government charges a 20% tax. The good news is that you can get this tax refunded. In order to get the full amount to which you are entitled, you must follow two separate procedures:
The Lump-sum Withdrawal will get you 80% of the pension refund that you are entitled to. This is because a 20.42% withholding tax is imposed on the Lump-sum Withdrawal.
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Tax Refund on the Lump-Sum Withdrawal Payment. You can file to claim the 20% tax with the help of a designated tax agent.
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Important Things to Keep in Mind
- Make a copy of everything (Pension book, forms, etc.).
- Regarding the Lump-sum Withdrawal, you must apply within 2 years of leaving Japan.
- Regarding the Tax Refund of the Lump-sum withdrawal, you must apply within 5 years of leaving Japan.
- The tax agent should be somebody that can read, write, and speak Japanese fluently. This person should also be somebody that you trust with financial matters.
- Remember that your base school/daily supervisor/BOE/CLAIR is not required to do this for you! Since this is not part of their job, they will probably have to take some nenkyu to file the tax refund. Be as accommodating as possible, and be thoughtful--give something nice to your tax agent!
- Once the tax refund process is done, you can fill out the Notification of Dismissal of Tax Agent form for cancelling your authorization of a tax agent. You can get the form here: www.nta.go.jp/taxes/tetsuzuki/shinsei/annai/shinkoku/pdf/h28/09.pdf
- Should the applicant die before receiving the Lump-sum Withdrawal Payment, a spouse, child, parent, grandchild, grandparent, or sibling living off the same income source, or who is considered to be a member of the same fiscal household at the time of the applicant's death, can receive payment in place of the applicant (in the case that the applicant dies after application)
- Need more information? Contact your local pension/tax office, refer to the JET GIH.
Other Pension Options
Social Security Agreements Between Japan and Other Countries
If you are a citizen of a country that has a social security agreement with Japan, you may be able to count the time you were enrolled in the Japanese pension system towards qualifying for your home country's pension system when you retire. This may be a more attractive option than the Lump-sum Withdrawal Payment, which is limited to 36 months, for those who stay in Japan long-term and return to their home country before retirement.
As of December 2022, the following 22 countries have social security agreements with Japan:
Note: Agreements with United Kingdom, Republic of Korea , Italy and China include "elimination of dual coverage" only.
**Italy: Signed, and under preparation for implementation.
For more information, visit the Japan Pension Service Website.
If you are a citizen of a country that has a social security agreement with Japan, you may be able to count the time you were enrolled in the Japanese pension system towards qualifying for your home country's pension system when you retire. This may be a more attractive option than the Lump-sum Withdrawal Payment, which is limited to 36 months, for those who stay in Japan long-term and return to their home country before retirement.
As of December 2022, the following 22 countries have social security agreements with Japan:
- Germany, United Kingdom, Republic of Korea, United States, Belgium, France, Canada, Australia, Netherlands, Czech Republic*, Spain, Ireland, Brazil, Switzerland, Hungary, India, Luxembourg, Philippines, Slovak Republic, China, Finland, Sweden, Italy**
Note: Agreements with United Kingdom, Republic of Korea , Italy and China include "elimination of dual coverage" only.
**Italy: Signed, and under preparation for implementation.
For more information, visit the Japan Pension Service Website.