Japan's Pension Lump-sum Withdrwal Payment & Tax

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We file Japan's pension Lump-sum Payment for foreigners (1)

Last modified 08/10/2011

Sumida Masanori

Japanese Public Consultant on Social Insurance & Labor/ Administrative Scrivener

(Japanese Public Consultant on Social Insurance & Labor is exclusively entitled to carrying out claiming Pension's Lump-sum Withdrawal Payment as claimant's agent.)

Pension's Lump-sum Withdrawal Payments are rebates that can be granted to those who were enrolled in Japan's pension system, but quit it by some reasons.
Non-Japanese residents who have their jobs with working visas, for example, are also enrolled in Japan's pension when they live in Japan for a certain period or more.
They will quit Japan's pension when they leave Japan with their visas having expired. So they can get repayment for pension contributions which they had paid to Japan, if they file their claims within 2 years after leaving Japan.

People working as employees are enrolled in "Employees' Pension Insurance"(厚生年金), so they can claim Lump-sum Withdrawal Payments after leaving Japan.
Self-employed people are also enrolled in Japan's "National Pension"(国民年金). They also can claim Lump-sum Payments after leaving Japan.
We can carry out to file your pension's Lump-sum Payment on behalf of you in Japan.

Please read carefully our following explanation, and decide whether to receive your Lump-sum Payment, as one of the advantageous options for you. When you decide to receive it, we can help you to file in Japan.

Firstly, we start with the explanation of Japan's pension system and how foreigners are treated in it.
This section is a little bit complex elaboration, so please read the next page first if you are in a hurry to know how to claim pension's Lump-sum Payment.

Pension System in Japan and How Foreigners are Treated

In Japan pension system is, in principle, constructed so that ALL residents in Japan are required to be enrolled in if they reach a certain age that must be regarded to have ability to work.
This is called "universal coverage principle(国民皆年金の原則)".
Universal coverage principle is applied regardless of residents' citizenships. So even if they have foreign citizenships, they are not exempt from being enrolled in Japan's pension system when they live in Japan for longer than a certain period.

For "National Pension"(国民年金, こくみんねんきん), it is ruled that persons must be enrolled in between 20 years old and 60. Other pensions such as "Employees' Pension Insurance"(厚生年金, こうせいねんきん) have a bit different rules than National one.

Japan has "International Social Security Agreement(社会保障協定, しゃかいほしょうきょうてい)" with foreign countries (See the table below)
People whose home countries have "International Social Security Agreements" with Japan are given "Elimination of Dual Coverage". "Elimination of Dual Coverage" is an agreement that prevents people from being enrolled in two countries' pensions at the same time, and which of pension they are to be enrolled in is decided by conditions ruled by each of agreement.
And some "Agreements" can, according to their contents, give people "Totalization of Periods of Coverage". When "Totalization of Periods Coverage" is applied, people can totalize a period they contribute to Japan's pension with a period they will contribute (or had contributed) to their home countries' pensions, and vice versa.

Contents of "Agreements" vary county by country. So please understand how "Agteement" of your home county is. But we show the list of countries that have "Agreement" with Japan and have "Totalization of Periods of Coverage" in them, as of Jul 2010.

International Social Security Agreements (As of Jul. 2011)
(Made from a table in Japan Pension Service's website)

Countries to have agreements	Totalization of Periods of Coverage
Germany	Yes
United Kingdom	No
South Korea	No
USA	Yes
Belgium	Yes
France	Yes
Canada	Yes
Australia	Yes
Netherlands	Yes
Czech Republic	Yes
Spain	Yes
Ireland	Yes

Developments of agreements for coutries other than above as of Jul. 2011 are as follows:
*Italy, Brazil and Switzerland have already signed social security agreements with Japan, but now are waiting for their implementations.
*Hungary and Luxemburg are under negotiation.
*Sweden, Slovakia, Austria, Philippines, India and People Republic of China are under preparation of negotiation.

For details of agreements of each country, see this page.

People whose home countries have "International Social Security Agreements" must contribute pensions to Japan if they are in conditions that agreements rule to be paid in Japan. And people whose home counries don't have agreements with Japan, or have agreements but are still unimplemented, are to contribute pensions to Japan according to Japan's rules for qualification.

Then, how will these contributions you pay be treated in the future?

Now we'd like to give a brief explanation on Japanese pension system.

Japanese pensions have two-layered system; "National Pension" (国民年金, こくみんねんきん. the Basic Pension for all the persons qualified), and other pensions (additional earning-related pensions).
These pensions are to be paid back as "Old-age Pension"(老齢年金), "Disability Pension and Disability Allowance"(障害年金), and "Survivors' Pension"(遺族年金).

Of these, "Old-age Pension", that is set for the retired, is the most wide-range one and covers most of people. The enrolling period to be qualified for recieving it is 25 years.
So a person must be enrolled in Japan's pension system for at least 25 years to be entitled to receiving "Old-age Pension".

For native Japanese, there will be no problem at least they keep contributing (or entitled to receive pension as house wives, etc) from their early years. But for people with foreign citizenships who immigrated into Japan in the middle of thier lives, or who had lived in Japan but emigrated to other countries afterwards, might not have enough periods to get Japan's pension. So we'd like to stress that you people with foreign citizenships might not, in your old ages, be paid back your contributions to Japan as pensions.
(In coutries which have "Totalization of Periods of Coverage" in above mentioned "International Social Security Agreements", persons can save the enrolling periods in Japan by totalizing them with their home countries. But some countries have agreements without totalization between Japan and home countries. See the table above.)

Various factors will influence conditions of foreign people to be entitled for receiving Japan's pensions; how are the "International Social Security Agreements" of their home coutry with Japan, how are the conditions they work in Japan, and so on. You must know your own condition if you want to know whether or not you are a qualifier, or what you must do if you wish to be qualified for receiving Japan' pensions.

The detailing introduction of Lump-sum Withdrawal Payments is available in various languages:

Next page we tell you the qualification and how to claim pension's Lump-sum Withdrawal Payment and, add to that, risks you incur when you claim Lump-sum Payment from oversea.
We wish to read them carefully if you plan to claim Lump-sum Payment.

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Japan's Pension Lump-sum Withdrwal Payment & Tax - Refund Service(1)

Our office refunds Japan's Pension Lump-sum Withdrawal Payment & its tax for foreigners. Contact in English & from abroad OK! Low fees but sure & quick. So we're much appreciated!

We file Japan's pension Lump-sum Payment for foreigners (1)

Last modified 08/10/2011

Pension System in Japan and How Foreigners are Treated