Support for non-residents filing under the election for taxation on retirement income

If you have left Japan and received a lump-sum withdrawal payment from the Japanese pension system, you may be able to claim a refund of part or all of the 20.42% income tax withheld.

Cazusa Tax Accounting Office handles the entire process — tax filing, tax agent notification, refund receipt, and remittance — online and in English.

 

 

 

Is This for You?

  • You received a lump-sum withdrawal payment or retirement allowance after leaving Japan
  • 20.42% income tax was withheld from your payment
  • You do not have a tax agent in Japan

 

Why a Refund May Be Possible

As a non-resident, retirement income from Japan is generally subject to 20.42% withholding tax at source, and the taxation is completed at that point.

However, this treatment may be less favorable than the tax treatment that would apply to a Japanese resident’s retirement income.

For this reason, Japan has a relief measure called the election for taxation on retirement income. Under this system, a non-resident may elect to have the retirement income recalculated in the same way as retirement income received by a Japanese resident. If the recalculated tax is lower than the amount already withheld, you can receive the difference as a refund.

For more details on the lump-sum withdrawal payment system, see our article: “Navigating the Lump-sum Withdrawal Payment System and Tax Refunds for Foreign Nationals”

 

A full refund is not guaranteed.
The refund amount depends on the details of your case. For example, the refund may be reduced if you received multiple retirement-related payments (company retirement allowance, DB), previously received retirement payments in Japan, served as a company director, or had a short period of service.
We will review your documents and explain the expected outcome.

 

 

Fees

Tax Refund Filing for Japan Lump-sum Withdrawal Payments
From JPY 38,500
Tax agent service included / Tax included

※ Additional fees may apply for cases involving multiple retirement-related payments, company director periods, expected refund amounts exceeding ¥1,000,000, or other complex circumstances.

※ The final fee will be confirmed after reviewing your documents.

 

How It Works

1. Inquiry

PleaseContact us with the basic details of your case, such as the type of payment you received and the date you left Japan.

2. Fee Estimate

We will confirm whether we can assist and provide an estimated fee. If additional review is needed, we will let you know before starting.

3. Engagement

If you would like to proceed, we will send an electronic agreement via GMO Sign for you to review and sign online.

4. Document Sharing

We will share a Google Drive folder with you. Upload the required documents and complete the information sheet.

5. Filing

We prepare and submit the tax return under the election for taxation on retirement income, along with the tax agent notification if required.

6. Refund

After processing, the refund is usually deposited into the tax agent’s account. We deduct our fee and remit the balance to your designated account.

 

Documents You May Need

  • Notice of lump-sum withdrawal payment or retirement income withholding tax slip
  • Bank account information for remittance

 

※ The full list of required documents will be confirmed after reviewing your case.

 

 

Frequently Asked Questions

Can we communicate in English?

Yes. We communicate in English by email or chat. Tax documents and filings are prepared in Japanese, but we explain the process and key points in English.

Can I get a full refund of the 20.42% tax?

Not always. The refund amount depends on the calculation under the election for taxation on retirement income. In many cases a significant refund is possible, but factors such as multiple payments, director periods, or prior retirement income may reduce the amount.

Do I need a tax agent in Japan?

In most cases, yes. Non-residents who file a Japanese tax return generally need a tax agent to receive correspondence from the tax office. We can handle this as part of the service.

Can the refund go to my overseas bank account?

Refunds for non-residents are typically paid to the tax agent’s account in Japan. We receive the refund, deduct our fee, and remit the balance to your account. Bank transfer fees may apply separately.

I received both a lump-sum withdrawal payment and a DB payment. Can you help?

Yes. However, multiple retirement-related payments often require additional review because they need to be considered together for the tax calculation. Please provide details of each payment.

I don’t have all the documents yet. Can I still contact you?

Yes. Feel free to contact us first. The filing can only be completed once the necessary documents are ready, but we can advise you on what you need.

How long does the refund take?

Processing time depends on the tax office, but it typically takes a few months after filing. We will notify you once the refund is received.

 

About Cazusa Tax Accounting Office

Cazusa Tax Accounting Office is a Tokyo-based tax practice run by a certified tax accountant with experience at a Big 4 audit firm.

The entire process is conducted online. There is no need to visit Japan. We respond quickly and explain each step clearly, especially for clients who are not familiar with the Japanese tax system.

 

What Our Clients Say

Your services were easy to use and understand. Everything was communicated and explained well and completed promptly. Masuda-san was extremely professional and helpful and I would definitely use these services again.

— A.R., Austria · Tax refund for lump-sum withdrawal payment

 

Communication was very smooth and service was very prompt.

— J.C., Singapore · Tax refund for lump-sum withdrawal payment

 

Very efficient and meticulous service. I have already recommended your services to my friends who will go through the same process soon.

— WZN, Singapore · Tax refund for lump-sum withdrawal payment

 

Contact Us

To help us review your case, please include the following information if available:

  • The date you left Japan, or your planned departure date
  • The type of payment received (lump-sum withdrawal, company retirement allowance, DB/DC, etc.)
  • Whether this is your first retirement from a job in Japan

 

 

 

 

You can also reach us at info@cazusa.com
or via LINE