Complete Guide to Getting Your Pension Refund and Tax Refunds When Leaving Japan

Introduction

Foreign residents and visitors in Japan are often eligible for certain tax refunds or exemptions when they leave the country or make purchases during a short stay. This guide breaks down three key opportunities for "tax back" in Japan: pension refund for departing foreign residents, income tax refunds (especially related to that japan pension refund or year-end tax adjustments), and consumption tax refunds (tax-free shopping) for tourists. We'll explain each in a step-by-step manner with practical tips, so you can follow the process without gaps.

Who is this guide for? Long-term foreign residents leaving Japan permanently can reclaim part of their pension contributions and certain income taxes. Meanwhile, short-term foreign visitors (or Japanese expatriates on brief return trips) can shop tax-free (getting the 10% consumption tax waived) on eligible purchases. Each process has its own conditions and paperwork – but don't worry, we'll cover them in detail. Let's get started on maximizing your refunds!

Claiming a Japan Pension Refund (脱退一時金)

When a foreign national working in Japan leaves the country for good, they may be eligible for a lump-sum withdrawal payment, commonly called the japan pension refund. This program allows you to get back a portion of the money you paid into the pension system during your stay. It's essentially a refund of pension contributions (since you likely won't be here to receive a Japanese pension in old age). Below are the steps and requirements to claim this:

Eligibility Checklist

To qualify, you must not be a Japanese national and must have contributed to the Employees' Pension Insurance (厚生年金) or National Pension (国民年金) for at least 6 months. You also cannot be enrolled in the pension system at the time of application (meaning you've left your job and Japan, and you have no resident address in Japan). Importantly, you must not be eligible for a regular pension (for example, you haven't contributed for the 10 years required to receive pension benefits) and have never received any Japanese pension benefits. Finally, you need to apply within 2 years of departure from Japan (after you've given up your resident status). In summary, a non-Japanese who paid into the pension for ≥6 months, has left Japan (no address), isn't already eligible for pension payments, and applies within 2 years can claim the refund.

What Can You Get Back?

The refund will be a portion of your total contributions. Japan will calculate the amount based on your contributions up to a maximum of 60 months (5 years) – even if you contributed longer, the refund caps at 5 years of payments. (This cap was extended from 3 years to 5 years as of April 2021.) The exact amount is determined by a formula using your average standard remuneration or the flat-rate contributions, so it won't be a full refund of everything you paid, but it's still a significant amount. For example, someone who contributed for 3 years might get back roughly those 3 years' worth of contributions (minus some handling), whereas someone who paid for 10 years would get about 5 years' worth (the maximum). Keep in mind that 20.42% income tax is withheld from the lump-sum payment – we'll address how to reclaim that tax in the next section.

Step-by-Step: How to Apply for the Japan Pension Refund

Prepare to Leave Japan

Before departure, take care of residency formalities. You should file a Moving-Out Notice (転出届) at your municipal office to formally end your residence in Japan. This is important because the japan pension refund application requires that you no longer have an address in Japan at the time of filing. If you submit the application while still on the resident register, it will be rejected. Generally, plan to send the application after you have left Japan or at earliest on the day you deregister your address.

Obtain the Application Form

Get the 脱退一時金請求書 (lump-sum withdrawal payment claim form). This form is bilingual (Japanese with your choice of 14 languages, including English) for ease of use. You can download it from the Japan Pension Service website or request it by phone, or pick one up at a pension office before you leave. Ensure you have your Basic Pension Number (基礎年金番号) handy – this is on your pension book (年金手帳) or the pension number notification letter. You'll need to enter this number on the form.

Gather the Required Documents

Along with the filled claim form, you must prepare several attachments:

• A copy of your passport pages showing your name, birthdate, nationality, signature, and Japanese visa status.
• Proof that you no longer have an address in Japan – for example, a copy of your jūminhyo removal record (住民票の除票) or other document.
• A document from your bank showing the account details where you want the refund to be sent.
• Your pension book or pension number notification (年金手帳 or 基礎年金番号通知書) copy.
• (Optional) If someone will submit the form on your behalf, include a Letter of Attorney (委任状).

Submit the Application

Send the completed form with all attachments to the correct office. If you only had National Pension or Employee Pension, send it to the Japan Pension Service (日本年金機構) headquarters in Tokyo. The address is pre-printed on the form. Make sure you send it after you've left Japan or at least on/after the date you removed your residency.

Wait for Processing and Payment

Once Japan Pension Service receives your application, they will process it and, if all is in order, approve your lump-sum withdrawal payment. After approval, they will send out a "Notice of Lump-Sum Withdrawal Payment" (脱退一時金支給決定通知書) to your address abroad. The payment will be remitted to the bank account you specified. This process usually takes 3–6 months. Keep the remittance notice letter safe for tax refund purposes.

Understand the Tax Withholding

The japan pension refund is subject to a flat 20.42% income tax withholding on the gross amount. You will likely receive only about 79.58% of the approved lump sum. You can reclaim most or all of that tax in a separate procedure (see next section).

(Quick Note: If you contributed to the pension for 10 years or more, you qualify for a Japanese pension annuity and cannot claim the lump-sum withdrawal payment.)

Getting an Income Tax Refund After Leaving Japan

There are two common income tax refund opportunities for foreigners leaving Japan: one is recovering the 20% tax on your japan pension refund, and the other is claiming a refund for overpaid income tax if you leave Japan in the middle of a tax year without final adjustment. Let's tackle each.

1. Tax Refund of the 20% Tax Withheld from Japan Pension Refund

Designate a Tax Representative

Japan requires that tax refunds be paid into a domestic (Japan) bank account. You'll need a 納税管理人 (Tax Payment Administrator) in Japan.

Receive the Japan Pension Refund and Notification

Wait until your lump-sum payment Notice arrives. You will need the details from that notice for your tax refund claim.

Prepare the Tax Forms

File an Income Tax Return (確定申告) to claim the refund. You have up to 5 years from January 1 of the year following the lump-sum payment.

Attach Supporting Documents

Attach the original lump-sum payment Notice, tax representative declaration form (納税管理人届出書), and any other required info.

Submit the Tax Return

Send the completed tax return to the tax office with jurisdiction over your last address in Japan. Mail it via international post or courier.

Receive Your Tax Refund

The tax office will issue the refund and deposit it into your tax representative's Japanese bank account.

Afterward

Optionally file a 納税管理人解任届出書 to officially discharge the tax representative duties.

2. Income Tax Refund for Partial-Year Earnings (Year-End Adjustment Issues)

If you leave Japan mid-year, you might have overpaid income tax and be entitled to a refund.

Why a Refund May Be Due

If you only worked part of the year, your income might fall into a lower tax bracket. You may also have unclaimed deductions.

Filing the Tax Return

You'll need the 源泉徴収票 (withholding slip) from your employer. File before leaving Japan or appoint a tax agent to file during the next season.

Tax Agent or Early Filing

You can file a tax return early before leaving Japan or later via a tax agent. Refunds go to a Japanese bank account.

Tip

Local inhabitants tax (住民税) is separate and not refundable. This guide focuses on national taxes.

Consumption Tax Refund (Tax-Free Shopping in Japan)

Foreigners can avoid paying Japan’s 10% consumption tax on certain purchases through the Tax-Free Shopping program.

Who Can Shop Tax-Free?

Foreign travelers on short-term visas and Japanese nationals living abroad for 2+ years qualify. Long-term residents of Japan do not.

What Purchases Are Eligible?

You must shop at licensed Tax-Free Shops and spend at least ¥5,000 (before tax) in one day, per store. Rules differ for consumables and general items.

How to Shop Tax-Free (Step-by-Step)

1. Shop at a Tax-Free Store: Look for the logo and meet minimum spend thresholds.
2. Show Your Passport at Checkout: Must be physical with an entry stamp or sticker.
3. Complete the Tax-Free Forms: Staff will verify your passport and complete forms.
4. Pay the Tax-Free Price: Pay the amount excluding tax and keep your receipts/forms.
5. At the Airport (Departure): Visit the customs counter with tax-free goods and documents.

Practical Example

A former resident returns to Japan as a tourist and buys a camera for ¥100,000. At checkout, tax-free status is applied, and the customer pays ¥90,909. The process is simple and can save thousands of yen.

Where to Find Tax-Free Shops

Look for the official logo in department stores and major chains. Tax refunds must be claimed at the time of purchase.

Conclusion & Summary Chart

Navigating Japan's tax refund systems can seem daunting, but with the right steps it's quite manageable.

Refund/Exemption Type	Who is Eligible	Key Conditions	How to Claim
Japan Pension Refund (脱退一時金)	– Non-Japanese who contributed to National/Employee Pension for ≥6 months – Permanently leaving Japan – Not qualified for regular pension – Must apply within 2 years after leaving	– No Japanese citizenship; not currently an insured person – Has Basic Pension Number – No address in Japan – Never received Japanese pension – Left Japan within 2 years	1. Get the lump-sum withdrawal form 2. Prepare documents: passport, proof of no address, bank info, pension book 3. Mail to Japan Pension Service 4. Receive payment (tax withheld at 20.42%). Max refund covers 60 months.
Income Tax Refund (Japan Pension Refund)	– Those who received a japan pension refund with 20.42% tax withheld – Have a tax agent in Japan	– File within 5 years – Need pension payment notice – Must use Japanese bank account	1. Designate tax agent (submit form) 2. Prepare tax return forms (declare refund as retirement income) 3. Mail to last-residence tax office 4. Receive refund to tax agent’s bank, who sends to you.
Income Tax Refund (Year of Departure)	– Foreign residents who left mid-year without year-end adjustment	– Left before Dec 31 without 年末調整 – Have 源泉徴収票 – May have unclaimed deductions	1. Collect income documents and deduction proofs 2. File before leaving or appoint agent 3. File tax return reporting Jan–departure income and deductions 4. Submit to former region’s tax office. Refund sent to Japanese account.
Consumption Tax Refund (免税購入税抜)	– Short-term visitors (<6 months) – Japanese abroad ≥2 yrs temporarily visiting	– Spend ¥5,000+ per store per day – Items must be personal use, removed from Japan – Consumables sealed/unopened until departure – Show passport proving visitor status	1. Shop at tax-free stores 2. Present passport 3. Complete tax-free paperwork 4. Pay tax-free price 5. Show items/forms at airport customs.