Can You Get Back the 20.42% Income Tax Withheld from Your Lump-sum Withdrawal Payment?

A general guide for foreign nationals who received Japan’s pension lump-sum withdrawal payment and had 20.42% income tax withheld. Learn the basic refund process after leaving Japan.

Updated: 2026-06-28

Foreign nationals who worked in Japan may receive a pension lump-sum withdrawal payment after leaving Japan. In some cases, 20.42% income tax is withheld before the payment is deposited. This article explains the general system and the possible refund process.

What you will learn

Why 20.42% income tax may be withheld
Why the withheld tax may be refundable
The general process after leaving Japan
What to check on the payment notice
How GetTaxBack can help organize the procedure

Key point

The income tax withheld from a lump-sum withdrawal payment may be refundable through a certain procedure. However, a refund is not guaranteed for everyone.

What is the lump-sum withdrawal payment?

The lump-sum withdrawal payment is a payment that certain foreign nationals may claim after leaving Japan if they were enrolled in the Japanese pension system.

It is often claimed by people who worked in Japan and were enrolled in Employees’ Pension Insurance or National Pension.

Eligibility depends on factors such as the type of pension, enrollment period, timing of departure from Japan, and future Japanese pension eligibility.

Why is 20.42% deducted?

When a person receives an Employees’ Pension lump-sum withdrawal payment, income tax may be withheld at source.

In some cases, 20.42% of the payment amount is deducted as income tax.

The payment notice may show:

Gross payment amount
Withheld income tax amount
Actual amount paid

If the amount on the notice and the amount deposited into your bank account are different, the difference may be the income tax withheld from the payment.

The 20.42% tax may be refundable

The income tax withheld from a lump-sum withdrawal payment may be refundable through a certain procedure.

In particular, if the payment is treated as retirement income, a refund of all or part of the withheld tax may be possible after the relevant calculation and filing process.

However, whether a refund is available and how much may be refunded depends on each person’s situation. A refund is not guaranteed for everyone.

Can the procedure be done after leaving Japan?

Even after leaving Japan, it may be possible to proceed through a tax representative in Japan.

A tax representative is a person in Japan who handles certain tax-related documents and communication on behalf of someone who no longer has an address in Japan.

If procedures in Japan are required after departure, appointing a tax representative may allow documents to be submitted and correspondence from the tax office to be handled in Japan.

Documents and information often needed

The following information or documents are commonly needed:

Pension lump-sum withdrawal payment notice
Identity document
Information about your address and work in Japan
Address after leaving Japan
Information for receiving the refund
Information about the tax representative

The most important document is the payment notice. It contains key information such as the payment amount, withheld income tax amount, and payment date.

Items to check on the payment notice

You should generally check the following items:

Lump-sum withdrawal payment amount
Withheld income tax amount
Actual amount paid
Payment decision date or payment date
Basic pension number or other identifying information

These items are used to organize the information needed for the procedure.

You may also handle the procedure yourself

It is possible for a person to research the system and handle the procedure by themselves.

However, after leaving Japan, preparing Japanese documents, mailing them to the tax office, or appointing a tax representative may be difficult.

What GetTaxBack can help with

GetTaxBack helps organize the information needed for the refund procedure based on the lump-sum withdrawal payment notice.

The general flow is:

Check the payment notice
Enter the necessary information
Confirm the documents needed for the procedure
Proceed with submission through a tax representative in Japan
Continue with the refund receiving process

Start with a free check

Enter your own information to check whether the service may apply to you.

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FAQ

Is the 20.42% tax always refunded?

No. A refund is not guaranteed. Whether a refund is available and the amount of any refund depends on each person’s situation and filing details.

Can I apply after leaving Japan?

In some cases, the procedure can be handled after leaving Japan through a tax representative in Japan.

Do I need the original payment notice?

It depends on the procedure. First, the contents can usually be checked using a copy or image of the notice, and additional documents can be confirmed if needed.

Can I handle the procedure myself?

A person may research the system and handle the procedure by themselves. However, Japanese document preparation, mailing documents to the tax office, and appointing a tax representative may be difficult after leaving Japan.

Does GetTaxBack provide tax advice?

GetTaxBack provides general information and helps organize information needed for the procedure. It does not provide individual tax judgment, tax amount calculation advice, or decisions on whether a filing should be made. If you need individual advice, please consult a licensed tax accountant or the relevant tax office.

First, check your payment notice

You can check whether 20.42% income tax was withheld by reviewing your lump-sum withdrawal payment notice.

If income tax is shown on the notice, you may want to check whether a refund procedure could apply.