Question 1

What is the Lump-Sum Withdrawal Payment, and who can apply?

Accepted Answer

This is a system that allows foreigners who paid pension premiums while working in Japan to receive a refund of a portion of those payments when returning home without receiving a pension. Who is eligible? You can apply if you meet all of the following conditions. Must be a foreign national: You must not hold Japanese nationality. At least 6 months of contributions: Your total pension contribution period must exceed 6 months. Less than 10 years of contributions: Your total contribution period must be under 10 years. No longer residing in Japan: You must not have a registered address in Japan. (Departure registration required before leaving) No history of pension receipt: You must never have received any pension (including disability pension). ※ Different criteria apply for permanent residents.

Question 2

Can I apply for the Lump-Sum Withdrawal on my own?

Accepted Answer

Yes, you can submit the documents yourself. However, we recommend using an agency service due to the tax refund process. The lump-sum withdrawal process is broadly divided into two steps. Make sure to check the tax refund part, which is easy to overlook when handling it yourself. Step 1: Lump-Sum Withdrawal Claim (can be done yourself) You can prepare the documents yourself and submit them to the Japan Pension Service by mail. In this case, you will receive approximately 80% of the pension premiums you contributed. Step 2: Income Tax Refund (tax representative required) For Employees' Pension (Kosei Nenkin), approximately 20% of the payment is withheld as income tax before disbursement. To reclaim this withheld tax, you must appoint a tax representative residing in Japan and file a separate report at the local tax office. In conclusion, It is practically difficult for applicants abroad to file a tax refund claim directly at a Japanese tax office. For this reason, many people use professional agency services to receive 100% of their lump-sum withdrawal (pension claim + tax refund).

Question 3

What is the deadline for applying?

Accepted Answer

You must apply for the lump-sum withdrawal within 2 years of the date you left Japan and no longer had a registered address there. Applications can only be submitted within 2 years of the date you lost insured status under the public pension system. However, if you had a Japanese address on the date you lost insured status, you have 2 years from the date you no longer had an address in Japan.

Question 4

How much will I receive?

Accepted Answer

The amount depends on the type of pension you were enrolled in and the length of your contribution period. For National Pension (Kokumin Nenkin), a fixed amount based on the fiscal year of your last payment is multiplied by a factor according to enrollment period. For Employees' Pension (Kosei Nenkin), it is calculated based on your average standard remuneration, the premium rate, and contribution period (capped at 60 months). Use the calculator on our homepage for an estimate.

Question 5

How long does it take to receive payment after applying?

Accepted Answer

If your submitted documents have no issues, payment will be made approximately 4 months after the claim is received. A 'Lump-Sum Withdrawal Payment Decision Notice' will be sent at the same time as the remittance. If there are any issues with your documents, payment may be delayed, so it is important to submit complete and accurate documents.

Question 6

Can I handle the Lump-Sum Withdrawal myself and only use the agency service for the tax refund?

Accepted Answer

Yes, that is possible. If you have already processed the Lump-Sum Withdrawal yourself and have received the Lump-Sum Withdrawal Payment Decision Notice, you can apply. Please select the Withholding Tax Refund Course through the refund application form.

Question 7

I lost my Lump-Sum Withdrawal Payment Decision Notice. Can it be reissued?

Accepted Answer

Yes, it can. Please select the Withholding Tax Refund Course through the refund application form to proceed with the agency application, and inform the person in charge that you need the Lump-Sum Withdrawal Payment Decision Notice to be reissued.

Question 8

I want to know the progress of my Lump-sum Withdrawal application.

Accepted Answer

The Japan Pension Service does not publicly disclose the progress of individual Lump-sum Withdrawal applications. At TaxGo, we provide updates on the processing completion dates of ongoing applications via our X (Twitter) account. Please refer to it for the latest information.

Question 9

How many cases has TaxGo handled for the Lump-sum Withdrawal?

Accepted Answer

Please refer to our client reviews on our Naver Blog (Korean). View client reviews

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