🌏 Retirement Allowance & Tax When Resigning During an Overseas Assignment (Non-Resident)

If you resign while on an overseas assignment and are treated as a non-resident of Japan, the retirement allowance you receive will be subject to 20.42% withholding tax on the portion related to your work performed in Japan.

✨ Good news:
Non-residents can apply the “Optional Taxation on Retirement Income (退職所得についての選択課税)”, which allows the retirement income to be calculated the same way as for Japanese residents.

If you had a long Japan-based work period, you may receive a tax refund by filing a Japanese tax return.

To file your return from overseas, you must appoint a Tax Agent (Nozei Kanrinin) in Japan.


🔗 Reference (NTA): Retirement Income Tax