💰 Tax Refund on Japan Pension Lump-Sum Withdrawal for Foreign Residents

🟦 1. When You Leave Japan and Claim the Lump-Sum Pension Withdrawal

Foreign residents who worked in Japan can apply for:
🔹 Lump-Sum Withdrawal Payment (National Pension & Employees’ Pension)
➡ When paid, 20.42% income tax is automatically withheld.

🟩 2. Can You Get This Tax Back? — YES
In most cases, a large portion of the 20.42% tax can be refunded
by filing an income tax return in Japan (after the payment is made).

🟧 3. How the Refund Works

[ Pension Lump-Sum Withdrawal ]
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💸 20.42% tax withheld
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[ File Tax Return through Tax Agent ]
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🔄 Refund from Tax Office

🟦 4. Tax Agent (“Nōzei Kanrinin”)
To request the refund, you need a Tax Agent in Japan.
✔ You can appoint a Tax Agent:
Before leaving Japan (recommended), or
After leaving Japan, if accepted by the tax office.

What the Tax Agent does:
📝 Files your tax return
🏦 Receives the refund on your behalf
✉ Sends the refund to you overseas

🟪 5. Process Timeline

🟦 Step 1 — Receive payment
Tax is withheld at source.

🟩 Step 2 — Tax Agent files return
Usually the following year.

🟧 Step 3 — Refund issued
The tax office deposits the refund into the Tax Agent’s bank account.

🟪 Step 4 — Tax Agent transfers to you

The following is information from the NTA.