Leaving Japan: Money Checklist

Decide who will be your tax agent

A tax agent (nōzei kanrinin) is a person or company in Japan who handles your taxes after you leave: receiving letters, filing a return and receiving refunds. You need one to get back the 20.42% tax withheld from your pension lump sum, and for any tax you still owe. A friend or colleague who lives in Japan can do it, or a tax accountant.

Ask your broker about NISA and your securities account

You can keep a NISA account while abroad only in limited cases, mainly when your employer transfers you overseas, and only for up to 5 years after submitting a continuation notice before you leave. Otherwise the NISA account ends when you leave. Many Japanese brokers also do not let non-residents keep an ordinary account, so ask early how they handle departure and move or sell your holdings in time.

Settle your resident tax

Resident tax (jūminzei) for the year that started in June is still owed after you leave. If you leave your job between January 1 and April 30, the rest of that year's tax is deducted from your final salary. If you leave between June and December, the remaining installments normally switch to payments you make yourself; you can ask your employer to deduct them from your final pay instead. Anything still unpaid must be paid off before you leave, or through a tax agent registered with your city office (this is separate from the tax office registration).

Settle your income tax for the year

If you are still employed when you leave Japan, your employer usually settles your income tax for the year in a year-end adjustment (nenmatsu chōsei) before you go. If you quit earlier, had other income, or want to claim deductions, you file a tax return for that year: either before you leave, or later through your tax agent. Because the full basic deduction applies even in a partial year, leaving mid-year often means a refund.

Register your tax agent at the tax office

Submit the notification of tax agent (nōzei kanrinin no sennin todokedesho) to the tax office for your address before you leave. Without it, you cannot file the refund return for your pension lump sum from abroad.

File your moving-out notification

Submit a moving-out notification (tenshutsu todoke) at your city office, usually from 14 days before you leave. It ends your registration as a resident, which also ends national health insurance and national pension if you are on them. If you may need proof of your departure later, you can get a copy of your closed residence record (jūminhyō no joyō).

Hand in your residence card if you are leaving for good

If you are leaving without a re-entry permit, hand your residence card (zairyū kādo) to the immigration officer at the airport. If you plan to come back within a year and keep your status, tell the officer and use the special re-entry permit instead.

Claim your pension lump-sum withdrawal payment (within 2 years)

If you paid into Japanese pension for 6 months or more, claim the lump-sum withdrawal payment from the Japan Pension Service within 2 years of leaving. Estimate it with the pension refund calculator.

Have your tax agent file the refund return (within 5 years)

When the lump sum is paid, send the notice of payment to your tax agent. They file a return that treats it as retirement income, which usually refunds most or all of the 20.42% withheld.