Tag Archive tax agent

How to claim income tax refund on Lump-sum Withdrawal Payment for foreigners

Persons who do not have Japanese Nationality, when they lose their qualification as an insured person in the National Pension or Employee’s Pension and depart from Japan, can claim a Lump-sum Withdrawal Payment (Social Insurance) within two years from the date they no longer have an address in Japan.
The procedure to claim Lump-sum Withdrawal Payment is not complicated and you can apply yourself if you can prepare the following documents.

Document to be submitted

・Lump-sum Withdrawal Payment Claim Form

・Copy of your passport pages (verifying your name, date of birth, nationality, signature, and status of residence)

・Copy of your passport page (verifying your departure date from Japan)※

・Bank account information for the transfer of the Lump-sum Withdrawal payment

・National Pension Handbook and other documents verifying your Basic Pension Number

※If you submit your claim before your departure, please prepare 1) copy of resident card with registration of Moving-out Notification and the planned deletion date or 2) resident’s card exemption.



Income tax on Lump-sum Withdrawal Payment

For Lump-sum Withdrawal Payment for the National Pension, the income tax is not withheld at source.

However, for the Employees’ Pension, income tax at the rate of 20.42% is withheld at the time of payment. In other words, you will receive only about 80% of the amount of the Lump-Sum Payment.

In order to claim this withholding tax refund, you need to submit the “Tax Return for Refund Due to Taxation on Retirement Income at the Taxpayer’s Option” to the tax office.

By doing so, you will get a tax refund.

As soon as the Lump-sum Withdrawal Payment is remitted, the “Notice of Lump-sum Withdrawal Payment Determination” is sent to your home country.

Please send the original “Notice” to your Tax Agent. If your Tax Agent is a tax accountant, you can ask him or her to file your tax return and claim your refund immediately.

How to file income tax returns in Japan for non-resident


Even if your taxpayer status is non-resident and you don’t have a residential address in Japan, you are still subject to relevant tax procedures. For example, if your domestic taxable income other than salary is more than JPY380,000, you are required to file an income tax return. Even if you make a loss in your business or real estate investment, it would be advisable to file a tax return still, as a loss can be used to reduce taxable income or you can carry it forward and set it against profits in a future year, when certain conditions are met.

In case you are a non-resident but need to handle relevant tax matters in Japan, you must appoint a tax agent (tax representative) who is a resident in Japan. You are required to submit application form to the District Director of the tax office which has jurisdiction over your place of business or real estate. You can personally comply requirements stated above but it is most advisable that your tax accountant should prepare and deal with the tax procedures for you. Your tax agent can be a Japanese corporation or an individual who resides in Japan.

K.S. Accounting has the expertise and vast experience in the international tax field, and we have the right people to handle your income tax needs. We can do everything for you starting from filing the form until income tax preparation. Click here for more information about our taxation services.


Tax agent for local taxes in Japan – Real estate acquisition tax / Fixed assets tax

If you are subject to local taxes described below, you need to submit a notification of a tax agent to the relevant local tax offices as well. For example, if you purchase a property in ski resorts, such as Niseko and Hakuba, you are liable to pay real estate acquisition tax and fixed assets tax for your property, even if you haven’t started your real estate business yet.


Local Taxes:
Inhabitant tax
Enterprise tax
Real estate acquisition tax
Fixed assets tax
Automobile tax etc.


Please note that you need to appoint a tax agent of national tax such as income tax, corporation tax and consumption to the national tax office.


Tax agent / Tax representative for an individual who will leave Japan


If you are a resident who must file the tax return for the year in which you leave Japan, the due date for filing the tax return and paying the tax is as follows:


(1) If you appoint a tax agent before departure, the due date for filing the tax return and tax payment for the year is March 15 of the following year.
(2) If you leave Japan without filing a notification of a tax agent, you must file the tax return and pay the tax before departure.


If there’s no income other than salary, and your employer carries out a year-end adjustment procedure, you don’t need to file a tax return. However, if you have certain taxable income other than salary, you need to appoint a tax agent and file an income tax return. If you have any concerns about your tax liability, we’d be glad to offer e-mail consultation service.