【How to Ask for Help of a Resident in Japan in Claiming Lump-sum Withdrawal】Twincities Labour & Social Security Consulting

March marks the end of the fiscal year in Japan.

As a result, some people may be considering leaving Japan and applying for the Lump-sum Withdrawal Payment.

Among them, some may be unsure whether to handle the application themselves or ask someone residing in Japan for assistance.

Therefore, in this article, we will introduce two ways to seek help from someone living in Japan.

 

1. Apply for the Lump-sum Withdrawal Payment Yourself and Only Request Assistance for the Income Tax Refund

 

Some individuals may prefer to gather the necessary documents and complete the Lump-sum Withdrawal Payment application on their own.

However, the Lump-sum Withdrawal Payment for Employees’ Pension Insurance is subject to income tax.

To receive a tax refund, you must appoint someone residing in Japan as your tax representative.

(Note: The only requirement for a tax representative is that they live in Japan; they do not need to be a tax accountant.)

In this case, when your Lump-sum Withdrawal Payment is approved, you will receive two documents: the Lump-sum Withdrawal Payment Notice of Approval and the Lump-sum Withdrawal Payment Remittance Notice.

You must send these documents to your tax representative, who will then file the income tax refund claim.

Since income tax refund claims cannot be processed until the following year, you should expect to receive the refund no earlier than the end of January of the following year.

 

2. Request a Japan Resident to Handle Both the Lump-sum Withdrawal Payment Application and the Income Tax Refund

 

For those who wish to minimize the burden of paperwork—or for those who plan to relocate immediately after returning to their home country—it may be better to entrust the entire process to someone living in Japan.

The pension office may send inquiry documents to your registered address in Japan if there are any issues with your application.

However, if you have already moved elsewhere, these documents may be returned undelivered.

In such cases, your Lump-sum Withdrawal Payment application may be delayed indefinitely, preventing you from receiving your payment.

If a resident in Japan handles the application on your behalf, they can directly contact the pension office if any issues arise.

Thus, if you are planning to move immediately after returning to your home country, it is advisable to entrust both the application and the tax refund process to someone residing in Japan.

At our office, we can assist you in either of these cases.

If you have any questions, please feel free to contact us.

 

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