Nenkin tax refund: how to get back the 20.42% tax on the Lump-sum Withdrawal Payment

When you receive the Employees' Pension (厚生年金) part of the Lump-sum Withdrawal Payment as a non-resident, 20.42% income tax is withheld. The National Pension (国民年金) part is not taxed. You can claim the tax back by filing a special tax return.

Why a refund is possible

The payment can be treated as retirement income. A non-resident can choose to have it taxed like a resident's retirement income (退職所得の選択課税). Retirement income has a large deduction, so for most people the tax becomes small or zero, and the withheld amount is refunded.

Step 1: appoint a tax agent before you leave

You need a tax agent (納税管理人) who lives in Japan, such as a friend, colleague or tax accountant. Before leaving, submit a "Notification of Tax Agent for Income Tax and Consumption Tax" (所得税・消費税の納税管理人の届出書) to the tax office for your last address in Japan. If you forget, it can be filed together with the tax return.

Step 2: send the payment notice to your agent

About 4 months after JPS receives your claim, you get the money and the "Notice of Payment of Lump-sum Withdrawal". Send the original notice to your tax agent.

Step 3: the agent files the return

Your agent files the "Tax return for refund by the optional taxation for retirement income" (退職所得の選択課税による還付のための申告書) at the same tax office. The refund is paid into the agent's account, or to an account you set up, so agree how the agent will pass the money to you.

Time limit

Under the general rule for refund returns, you can file within 5 years from 1 January of the year after the payment. Do not wait: documents get lost and agents move.

Using a paid service

Many companies offer to act as your tax agent for a fee, often a percentage of the refund. Compare the fee with the amount shown in the calculator before signing.

Estimate your payment with the calculator →

Official sources

Last checked: 2026-11-04