Lump-sum Withdrawal Payments Claim Support
Service Overview
Lump-sum Withdrawal Payment is a system that allows non-Japanese to receive a partial refund of pension insurance premiums paid when you have short coverage periods under the National Pension system or the Employees’ Pension system. You may be able to apply for the Lump-sum Withdrawal Payments within two years since you leave Japan.
Takane Office, national qualification holder called “Sharoshi” (Social Security and Labor Attorney) will handle applications for lump-sum withdrawal payments claim and the refund procedures for the tax withheld when the lump-sum withdrawal payment was paid for foreign nationals who have worked in Japan.
Takane Office provides the following services:
- Support with lump-sum withdrawal payment claim procedures including creating application form, collecting necessary information, postal service in Japan.
- Support with tax refund procedures against income tax that are withheld when you have received lump-sum withdrawal payment.
- Remittance procedures for the income tax refunded under procedure of No.2.
To claim the lump-sum withdrawal payments, you must meet the following requirements:
- You do not have Japanese nationality
- You participated in employees’ pension insurance (including Mutual Aid Association System, etc) and paid contributions to the system for 6 months or more.
- You do not fulfill the requirement for receiving old-age basic pension.
- You are not (and have never) entitled to receive a pension, including disability allowance.
- You do not have an address in Japan.
Procedures for claiming Lump-sum Withdrawal Payments:
We have two plans according to your needs, i.e. when you do the procedures yourself are claiming the payments by yourself, or whole service is provided by Takane Office. Please find the below workflow from the lump-sum withdrawal payment claim to the remittance of the refunded tax.
| Plan A In case client makes payment claim by themselves | Plan B In case Takane Office acts as your agent and make payment claim | |
| 1 | After leaving Japan, send Lump-sum Withdrawal Payment Claim form to Japan Pension Service by overseas post. | Takane office will act as your agent and submit the Lump-sum Withdrawal Payment Claim form to Japan Pension Service by mail or in person. |
| 2 | Japan Pension Service issues Notice of Remittance/Notice of Entitlement for lump-sum withdrawal payments and send to your address by mail. Lump-sum withdrawal money will be remitted to the bank account designated by the client at the same time. It takes about 3-4 months for the money to be transferred. | Japan Pension Service issues Notice of Remittance/Notice of Entitlement for lump-sum withdrawal payments and send to Takane Office by mail. Lump-sum withdrawal money will be remitted to the bank account designated by the client. It takes about 3-4 months for the money to be transferred. |
| 3 | Please provide us with the Notice of Remittance/Notice of Entitlement described in 2 above. | |
| 4 | Based on the Notice of Lump-sum Withdrawal Payment, Takane Office will process the withholding tax refund. | Based on the Notice of Lump-sum Withdrawal Payment, Takane Office will process the withholding tax refund. |
| 5 | Tax office will transfer the tax refund to Takane Office. | Tax office will transfer the tax refund to Takane Office. |
| 6 | Once tax refund is paid into our account, we will immediately transfer the money to your designated account. | Once tax refund is paid into our account, we will immediately transfer the money to your designated account. |
Service Type / Service Fee
| Service Type | Service Summary | Service Fee (includes 10% tax) |
| Plan A | Lump-sum Withdrawal Payment Claim Procedure + Income Tax Refund Claim + Remittance Procedure This service is for those who have not yet claimed their Employees’ Pension Insurance Lump-sum Withdrawal Payment and wish to receive your withholding tax refund in your bank account. | JPY 44,000 |
| Plan B | Lump-sum Withdrawal Payment Income Tax Refund Claim + Remittance Procedure This service is for those who have already received a lump-sum withdrawal payment from the Employees’ Pension Insurance and wish to receive a refund of withholding tax in your bank account. | JPY 33,000 |
Your withholding tax refund will be deposited into the bank account of our firm (office), as your acting tax agent. We will then deduct service fees and bank charges from the refund and remit the remaining amount to your bank account.
Withholding Tax Refund Procedures and Remittance
20.42% tax are withheld from your lump-sum withdrawal payment at the time of remittance by Japan Pension Service. You can receive refund of the withheld tax by submitting a “Declaration for Refund of Retirement Income through Elective Taxation” to the tax office. To file this declaration and receive the refund, you must submit a “Notification of Appointment of Tax Agent for Income Tax and Consumption Tax” to the tax office with tax office over your last known address or place of residence in Japan.
As your tax agent, Takane Office will handle the tax refund procedures and make an international (or domestic) remittance to your designated account. We will also work with a tax accountant as necessary.
We offer flexible support to accommodate your needs, whether you want to prepare before returning to your home country or are unsure about the exact procedures after leaving Japan.
Please feel free to ask any questions and save your valuable time!