How to Claim Your Japan Pension Refund

Who is eligible?

1. The Pension refund is for non-Japanese citizens only.

If your home country signed a coverage totalization agreement with Japan, you may be qualified for pension benefits in your home country. As of October 2022, 19 countries signed the agreement. Your Japan pension contribution will count towards your home country pension scheme, and vice versa.

If you have enrolled in the pension scheme in the listed countries, you may NOT want to file a pension refund. For more details, please refer to your home country’s pension website.

1. Australia

2. Belgium

3. Brazil

4. Canada

5. Czech Republic

6. Finland

7. France

8. Germany

9. Hungary

10. India

11. Ireland

12. Luxembourg

13. Netherlands

14. Philippines

15. Slovak Republic

16. Spain

17. Sweden

18. Switzerland

19. United State

2. You made pension contributions for 6 months – 9 years 11 months.

It does not matter whether you are enrolled in national pension (kokumin nenkin) or employee pension (kosei nenkin). If the total enrollment period is 6 months – 9 years 11 months, you can file for the refund. You can check your contribution record at “NENKIN NET” website (Japanese Only). If you have contributed for 10 years or more, you can collect the Japan pension when you turn 65 years old. You do not need to be a Japan resident when you collect it.

3. You left Japan permanently

You have no intention of coming back to Japan. You filed an overseas departure notice (kaigai tenshutsu todoke) at your local Ward office. Please note you can NOT reverse the refund even if you return to Japan and re-enroll in the Japanese Pension. After receiving the refund, your pension history will be erased. If you become a Japan resident again, you will need to start over again.

What are the required documents?

– Refund Application Form (page 14 – 15)

– Copy of passport (face photo page)

– Copy of residence card (front & back)

– Copy of pension book (pension number page)

– Bank account information

For foreign banks, please provide a statement in English issued by the bank with the following information.

1. Bank Name

2. Branch Name

3. Branch Address

4. Account Number

5. Account Holder Name

For Japanese banks, copy of the bank book (inside first page for Japanese banks)

1. It needs to be YOUR account. Account holder’s name needs to match the pension record. Refunds can’t be deposited to your family, friend, or tax representative’s bank account.

2. Pension Office can NOT deposit the pension refund to Japan Post Bank account, yucho ginko.

3. For other Japanese banks, the registered account holders name MUST be registered in katakana in the bank’s database. Japanese banking system can not recognize スミス ジョン and ジョン スミス as the same person. Even if the bank name, branch name, and account number are correct, the payment won’t be processed if katakana name order and spelling are off. Please make sure to provide the correct katakana.

What are the steps?

1. You find a tax representative, nouzei kanrinin.

2. Tax rep submits the tax rep registration form to your local tax office.

3. You submit the overseas departure notice to your local ward office.

4. You fly out of Japan.

5. You submit the pension refund form to the pension office by post.

6. Pension Office deposit the pension refund to your bank account.

7. You submit the income tax return to your local tax office.

8. Tax office deposits the income tax refund (if any) to tax rep’s bank account.

9. Tax rep transfers the tax refund to your account.

10. You receive the tax refund in your account.

How much is the refund?

It depends on how much you have contributed via your monthly pension contribution. The formula is as follows:

(Your average gross wage over the time period * Pension Rate * Enrollment Period) MINUS (20.42% non resident income tax)

As an example, if your gross wage is (560,000 JPY * 8 mth) + (620,000 JPY * 22 mth) + (additional bonus 1,100,000 JPY) = 19,220,000 JPY

Your average gross wage is 19,220,000 / 30 mth = 640,667 JPY

FAQ

Q1. I did not make any pension contributions when I was unemployed for 3 months. How will it affect the refund calculation?
A1. Any months you did not pay into the Pension scheme are not included in the calculation.

Q2. How long does it take to receive a refund?
A2. According to the Pension Office website, it takes 4 months. ← CONFIRMED

The application was submitted on 2021 November 25, and the refund was deposited into her account on 2022 March 15.

Q3. I was enrolled in the pension scheme for 7 years. What is my enrollment period multiplier?
A3. 60 months (= 5 years) are the maximum enrollment period for the pension refund.

Q4. Why is income tax withheld?
A4. Your pension refund is treated as income. After you leave Japan, you are classified as a non-resident (hikyojusha), and 20.42% income tax is applied. If you register a tax representative (nouzei kanrinin) before leaving Japan, you can file a tax return (kakutei shinkoku) and get 20.42% income tax refunded after you have received your Pension Refund.

Q5.  Who can be a tax representative (nozei kanrinin)?
A5.  Tax representative can be your friend, family, colleague, employer, or a Certified Tax Accountant (zeirishi) if he or she:

1. Lives in Japan

2. Has a Japan bank account

3. Can read and write Japanese

4. Understands he or she is the point of contact between you and the Tax Office if any issues arise

* If you are not sure about your particular situation, please contact us.