1. What is a Tax Representative (納税管理人)?
A Tax Representative (納税管理人, Nouzei Kanrinin) is a person or entity appointed by a foreigner who has left Japan but still has tax obligations in the country. This representative is responsible for handling tax-related matters, including filing tax returns and receiving tax refunds on behalf of the foreigner.
Foreigners who have received the Lump-Sum Withdrawal Payment (脱退一時金, Dattai Ichijikin) from the Japanese pension system and wish to claim a tax refund for the deducted income tax (所得税, Shotokuzei) must appoint a Tax Representative.
2. Why Do You Need a Tax Representative for a Tax Refund?
When a foreigner leaves Japan, they no longer have a registered address in the country. However, to process tax-related matters such as refunds, the Japanese tax office requires a registered contact person residing in Japan—this is the Tax Representative.
Without appointing a Tax Representative, it is impossible to receive a refund for the income tax deducted from the Lump-Sum Withdrawal Payment.
3. Steps to Appoint a Tax Representative
- Find a Representative
- This can be a trusted individual (such as a friend or employer) or a professional (such as a tax accountant (税理士, Zeirishi) or an administrative scrivener (行政書士, Gyoseishoshi) who cooperates with a tax accountant).
- Submit the Notification of Tax Representative (納税管理人届出書, Nouzei Kanrinin Todokedesho)
- This form must be submitted to the local Tax Office (税務署, Zeimusho) before leaving Japan.
- The form is available at tax offices or on the National Tax Agency’s website.
- Confirm Acceptance by the Tax Office
- Once submitted, the tax office will officially register the representative.
- Apply for the Tax Refund
- The Tax Representative will file a Final Tax Return (確定申告書, Kakutei Shinkokusho) on behalf of the foreigner to claim the refund.
- Receive the Tax Refund
- The tax office will process the application, and the refund will be deposited into the Tax Representative’s bank account.
4. Lump-Sum Withdrawal Payment Tax Refund Process
(1) What is the Tax Refund for Lump-Sum Withdrawal Payment?
When foreigners receive the Lump-Sum Withdrawal Payment, 20.42% of the amount is deducted as income tax. However, this tax can be refunded by filing a Final Tax Return through a Tax Representative.
(2) Example of Tax Refund Calculation
| Lump-Sum Withdrawal Payment Amount | Income Tax Deducted (20.42%) | Refundable Amount |
|---|---|---|
| 600,000 JPY | 122,520 JPY | 122,520 JPY |
| 1,000,000 JPY | 204,200 JPY | 204,200 JPY |
| 2,000,000 JPY | 408,400 JPY | 408,400 JPY |
(3) Required Documents for Tax Refund Application
- Final Tax Return Form (確定申告書, Kakutei Shinkokusho)
- Copy of Lump-Sum Withdrawal Payment Notice (脱退一時金支給決定通知書, Dattai Ichijikin Shikyuu Kettei Tsuchisho)
- Copy of Passport (showing departure from Japan)
- Notification of Tax Representative (納税管理人届出書, Nouzei Kanrinin Todokedesho)
- Tax Representative’s Bank Account Information
5. Should You Hire a Professional for the Tax Refund Process?
While it is possible to appoint a trusted friend or employer as a Tax Representative, many foreigners prefer hiring a professional (tax accountant or administrative scrivener working with a tax accountant) to ensure the refund process goes smoothly.
Pros of Hiring a Professional:
✅ Avoid mistakes in paperwork and submission ✅ Faster processing and fewer delays ✅ Assurance that all requirements are correctly met
Cons of Hiring a Professional:
⚠️ Professional services usually require a fee ⚠️ If the refund amount is small, the fee may outweigh the benefit
When Should You Hire a Professional?
- If your refundable tax amount is large (over 200,000 JPY), hiring a professional is often worth it.
- If your refundable tax amount is small (under 50,000 JPY), it may be better to handle the process yourself or ask a friend to be the Tax Representative.
6. Key Takeaways
✅ A Tax Representative (納税管理人) is required for foreigners who wish to receive a tax refund after leaving Japan.
✅ 20.42% of the Lump-Sum Withdrawal Payment is deducted as income tax, but this can be refunded.
✅ The refund process requires submitting a Final Tax Return via a Tax Representative.
✅ Hiring a professional (tax accountant or administrative scrivener) is recommended if the refundable amount is large.
✅ Consider the costs before hiring a professional to avoid a situation where the refund amount is too small to justify the service fee.
For further assistance, consult a qualified tax professional or legal advisor specializing in Japan’s tax system.
