How to reclaim the income tax on your Japanese pension lump-sum from abroad

A summary of the whole procedure, for people who worked in Japan, went home, received the Employees' Pension lump-sum and noticed that tax had been withheld from it.

1. Check whether you are eligible

All four need to apply:

• you received an Employees' Pension lump-sum, not a National Pension one
• your payment decision notice shows 20.42% withheld as income tax
• fewer than five years have passed since the lump-sum was paid
• you currently live outside Japan

The only nationality condition is not holding Japanese nationality. → What the lump-sum withdrawal payment is

2. Understand why the tax was taken

Because you had left Japan and were a non-resident when the lump-sum was paid, 20.42% was withheld up front without the retirement income deduction a resident would get. Filing the retirement income taxation election applies that deduction, recalculates the tax and reclaims the difference. → the retirement income taxation election, non-resident withholding

3. Check the deadlines

There are two. If you have not claimed the lump-sum itself yet: two years from leaving Japan. If you have already received it: five years from payment. → claim deadline, refund deadline

4. Get your documents together

Originals are not needed at the start — photos or scans are enough for the preliminary check.

• payment decision notice (lost it? see reissuing the notice)
• copy of your passport (photo page, and the page with the departure stamp)
• copy of your residence card (front and back, as punched on departure)
• a bank account in your own name — an account in your country or in Japan both work, and the details are needed only after the preliminary check, not when you apply

5. A tax accountant files for you

Because a non-resident cannot easily deal with a Japanese tax office, a Japanese tax accountant files as your tax agent. You never deal with the tax office yourself; correspondence is in Japanese, English, Korean, Chinese or Vietnamese. → what a tax agent is

The flow is four steps: apply online → free preliminary check (1–2 days) → post the originals → filing and refund.

6. You only pay after the refund

There is no retainer; the ¥25,000 fee (tax included) is settled only after the refund has been paid. If no refund is obtained, the tax accountant's fee is not charged. Out-of-pocket costs such as international postage may arise separately and are quoted before they do.

In most cases almost all of the withheld tax comes back, but a full refund is not guaranteed. The actual amount depends on your enrolment period, other retirement income in the same year and the tax office's review — the reliable estimate comes from the preliminary check.

This article summarises the flow of the procedure; it does not establish any individual applicant's eligibility or refund amount. That requires an individual review based on your payment decision notice.