Eligibility for the Lump-Sum Withdrawal Payment
Non-Japanese nationals who meet specific criteria can apply for a Lump-sum Withdrawal Payment (dattai ichi ji kin) when they leave Japan.
Core Requirements:
- You must not be a Japanese citizen.
- You must have permanently left Japan and no longer be a registered resident.
- You need to have paid into the National Pension or Employees' Pension Insurance for at least six months, but less than 10 years.
- If you contributed for 10 years or more, you are eligible for the regular old-age pension, not the lump-sum.
- You must not have previously received any Japanese pension benefits.
- Your application must be submitted within two years of leaving Japan.
The Application Process: A Step-by-Step Guide
The application process involves several steps, some of which are best completed before leaving Japan. Before leaving, you should submit a Moving-Out Notice (Tenshutsu Todoke) to deregister residency and download the application form from the Japan Pension Service website. You also need to appoint a tax agent in Japan by submitting a Tax Representative Declaration (Nōzei Kanrinin no Todokedesho) to claim the refundable 20.42% tax. Gather necessary documents like your Basic Pension Number and passport copy. After leaving Japan, mail the completed application and documents to the Japan Pension Service. The initial refund, minus the 20.42% tax, is typically received in 3 to 6 months. Send the Notice of Payment to your tax agent to reclaim the withheld tax.
Pension Totalization Agreements vs. Lump-Sum Withdrawal
Japan has social security agreements with certain countries that can be an alternative to the lump-sum withdrawal. These agreements allow for combining pension contribution periods.
| Feature | Lump-Sum Withdrawal Payment | Pension Totalization Agreement |
|---|---|---|
| Eligibility | Non-Japanese with <10 years of contributions, leaving Japan permanently. | Residents of countries with an agreement with Japan. |
| Application Timeline | Must apply within 2 years of leaving Japan. | Can be applied for years after leaving Japan; your Japanese contributions are counted towards your home country's pension. |
| Benefit | Receive a capped, one-time payment based on up to 60 months of contributions. | Combines contribution periods from Japan and your home country to help you qualify for pension benefits in your home country. |
| Impact on Japanese Pension | All previous Japanese pension enrollment periods are erased permanently. | Your Japanese contribution period is preserved and transferred to your home country's system for totalization purposes. |
| Best For | Individuals with shorter contribution periods (e.g., 6 months to 5 years) who need immediate cash and do not intend to return to Japan. | Individuals from a treaty country with a longer work history (e.g., more than 5 years) who want their Japanese contributions to count toward their long-term retirement benefits. |
Calculation of the Lump-Sum Amount
The refund amount is calculated based on your total contribution period, capped at 60 months (5 years). Calculation details differ for National Pension and Employees' Pension Insurance. Further details are available on the {Link: Japan Pension Service website https://www.nenkin.go.jp/international/japanese-system/withdrawalpayment/payment.html}.
Conclusion: Your Decision Matters
Non-Japanese residents leaving Japan may claim a Lump-sum Withdrawal Payment if they meet eligibility criteria. The process involves steps before and after leaving, including appointing a tax agent to reclaim the full amount. However, if your home country has a social security agreement with Japan, totalizing pension periods might be an alternative depending on your situation and future plans.
Optional Resources
For more information and application forms, visit the official website of the Japan Pension Service.
