When COVID-19 began to spread around the world, countless non-residents left Japan earlier than expected and returned to their home country.
If this happened to you, the good news is that you could be due a tax refund!
Japan has one of the highest individual income tax rates. Nonresidents pay tax on their income at 20% so if you worked and paid income taxes during your time in Japan then you’re more than likely going to be owed some tax back!
In this guide, you will learn everything you need to know about how to claim your Japanese tax refund. We will also share some top tips on how to claim back your Japanese pension refund.
First things first. Am I eligible for a Japanese tax refund?
Thousands of non-residents in Japan are due tax back every year.
In short, you may be eligible to get tax back if:
· You worked in Japan for more than a year
· You are married
· You have dependents e.g. a child
How much tax could I be owed?
The average Japanese tax refund Taxback.com customers claim is ¥111,000 from Japan.
Taxback.com can claim your tax refund for up to five years, so if you left Japan due to COVID-19 it’s definitely worth your while applying with us.
You can check out how much you are owed by using our Japanese tax calculator.
What will I need to file my tax return?
To claim back your tax you will need:
· Your Gensen-Choshu-Hyo (a statement of income and tax paid from your employer)
· ID e.g. Passport
· Copy of your pension number or pension book.
Will I be taxed as a resident or non-resident of Japan?
Japanese nationals and nonresidents who’ve registered with a local government to work in Japan will receive a 12-digital number for tax purposes.
If you live in Japan for one year or more, you will be considered a resident. If you have only stayed in Japan for a short while (less than one year), you are non-domicile and you are only liable for Japanese sourced income and not income from abroad.
How can I claim my tax refund from outside Japan?
It is easy to claim your Japanese tax refund with Taxback.com. Our team will handle all of the paperwork and communicate with the Japanese tax authorities on your behalf.
We will also transfer your refund straight to your bank account, anywhere in the world.
Am I eligible for a Japanese Pension Refund?
While working in Japan it’s more than likely you’ve paid money into the Government’s National Pension Scheme plan fund for you by your employer.
Once you leave Japan, you may be entitled to claim back your pension contribution. Here at Taxback.com we can help claim back your pension fund too.
You must meet certain criteria while trying to claim your Japan pension refund.
First, you must make sure you are not a Japanese national or permanent resident in Japan and that you do not intend to retire in Japan.
Also, you cannot claim your pension contributions if you hold dual citizenship for example Japanese and any other country.
You have two years to claim your pension fund once you leave Japan but you must have left the country for at least 6 - 8 months before you can claim back the money.
What will I need to file my Pension Refund application?
In order to file for your pension refund you will need:
1. Your Zairyu card or Gaijintoroku (residence card).
This will make your application process quicker.
2. Your Nenkin booklet.
This is an essential document to request a refund. If you do not have one or lost it, you can ask your employer for one.
3. Your Gensen.
This is a statement of your income and paid tax. Ask for your latest yearly statement from your employer as soon as you stop working.
Where can I apply for my Japanese Pension Refund?
You can apply for your pension refund yourself. However, to avail of your maximum refund you can apply for your Japanese Pension Refund with Taxback.com.
The average tax refund on the pension reimbursement payment in Japan is ¥122,000. Our average Japanese pension refund is ¥600,000!
Who can help me claim my Japanese tax back?
You can claim your tax back yourself.
However, Taxback.com offers specialists in Japanese tax laws so we can do all the heavy lifting and tricky paperwork for you.
Our dedicated team is here to help you claim your maximum tax refund.
Our average Japanese tax refund is ¥111,000 so it’s definitely worth claiming back what you are owed! We’ll even transfer your refund straight to your bank account, anywhere in the world.
Why apply with Taxback.com
· Your maximum refund guaranteed
· We transfer your money to your bank account, anywhere in the world
· No complicated forms – we handle all the tricky paperwork
· 24/7 Live Chat support