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Japanese Pension Refund for Indian Employees – Step-by-Step Process

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Financial Analyst

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Step-by-Step Process for Japanese Pension Refund

Step 1: Leave Japan & Deregister Residence

  • Submit Moving-Out Notification at the city office
  • Return residence card at airport immigration
  • Close local address registration

Step 2: Obtain Pension Number

Collect:

  • Pension handbook (Nenkin Techo) OR
  • Pension number from employer / pension office

Step 3: Prepare Required Documents

Documents required include:

  • Copy of passport (photo & exit stamp pages)
  • Pension number
  • Bank account details (overseas account allowed)
  • Filled Lump-Sum Withdrawal Payment Claim Form

Step 4: Submit Lump-Sum Withdrawal Application

  • Submit application to Japan Pension Service
  • Mode:
    • By international post from India

Step 5: Processing by Japan Pension Service

  • Authorities verify:
    • Contribution period
    • Exit status
    • Eligibility

Processing Time:
👉 3 to 6 months

Step 6: Receive First Pension Refund (80%)

  • About 80% of refund credited directly to bank account
  • This amount is subject to 20.42% Japanese tax withholding

Step 7: Claim Japanese Withholding Tax Refund (20.42%)

To recover withheld tax:

  • Appoint a Tax Representative in Japan
  • File Japanese tax refund claim
  • Remaining 20.42% tax refunded

Amount of Japanese Pension Refund

Refund amount depends on:

  • Total contribution period
  • Salary level
  • Pension type

Maximum claimable period:
👉 Up to 5 years (60 months) of contribution

Taxation & India–Japan DTAA

  • Pension refund is taxable in Japan initially
  • Withholding tax can be reclaimed
  • In India:
    • Refund may be taxable as income
    • DTAA relief may apply
    • Foreign Tax Credit available if tax not refunded

Common Mistakes to Avoid

  • Missing the 2-year deadline
  • Incorrect bank details
  • Missing exit stamp proof
  • Not claiming tax refund
  • Wrong pension number

How Saving Mantra Helps Indian Employees

Saving Mantra provides end-to-end Japanese pension refund support, including:

  • Eligibility assessment
  • Pension refund application filing
  • Tax representative arrangement in Japan
  • Withholding tax refund claim
  • India tax impact & DTAA advisory

Frequently Asked Questions (FAQs)

Q1. Can I apply for Japanese pension refund from India?
Yes, the application can be filed from India by post.

Q2. What is the deadline to claim pension refund?
Within 2 years from the date of leaving Japan.

Q3. Can I get 100% pension refund?
Yes, after claiming the withheld 20.42% tax refund, subject to eligibility.

Q4. Is pension refund taxable in India?
It may be taxable depending on residential status and DTAA relief.

Disclaimer

This article is for informational purposes only and does not constitute legal or tax advice. Japanese pension and tax rules may change. Consult Saving Mantra experts for accurate and personalized assistance.

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