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Tax for Japanese working abroad 2012/11/8 05:35
Good evening, I am asking a question on behalf of a Japanese friend living in the UK. Do Japanese working abroad have to pay a Social Security tax or contribution in order that he may be able to draw a Japanese pension when he eventually return to retire in Japan. If so, what is that rate and who do they apply to. Thank you very much. Stephen C
by Stephen C (guest)  

Re: Tax for Japanese working abroad 2012/11/8 10:33
It depends on where he is registered as a resident, and where he is drawing income from.

If he is, for example, an employee of a Japanese company, and that company is sending him to its UK operations, I assume he is still on that company's payroll, is still keeping his status as a tax-paying resident of Japan, though he is physically overseas. In that case he will continue to pay income taxes, social security contribution, etc. out of his income in Japan while he is away.

On the other hand, if he's removed himself from his "juminhyo" as a resident overseas (has a long-term resident status in the UK), is not on the payroll of a Japanese company, and maybe is employed by a UK entity, getting income from that UK entity, he will be considered a non-resident of Japan, and he doesn't have to pay into the Japanese health insurance or pension system; actually there is no way for him to pay into the pension scheme, as far as I know.

There might be a way to "merge" the contribution he's made in the UK to UK pension system and the portion (maybe) he's paid into the Japanese system before he went to the UK, so that he might fulfill the minimum 25 years of contribution to the Japanese pension system.

I believe there should be a way to contact the authorities via internet inquiries, though.
by AK (guest) rate this post as useful

Re: Tax for Japanese working abroad 2012/11/8 17:30
Thank you for your response which is most useful. Is there a web site you can point me to for more information on personal taxation for Japanese working abroad?. Many thanks. Stephen C
by Stephen C (guest) rate this post as useful

Re: Tax for Japanese working abroad 2012/11/8 17:54
Whoops, I guess I was a bit wrong - if he moves out of Japan (removes himself from the "juminhyo") he is not "required" to pay into national pension, but he can "voluntarily" be a part of if.


Along the left top, if he looks under 海外に居住する方 (for those who will reside overseas), he can read the explanation:
by AK rate this post as useful

Re: Tax for Japanese working abroad 2013/4/26 03:58
As per my knowledge their is a service called Internal Revenue Service (IRS)This service provides U.S. Federal tax assistance to Americans in Japan, and is also the destination for all returns filed from abroad.
by smithjames1 rate this post as useful

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