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Overseas Pension?

JoeRiley

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Apr 6, 2015
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Hi everyone!
I hope someone can help me understand Japanese tax law, as I'm trying to do some research for my friend.
My friend is a Japanese citizen who currently works here in the Philippines. The company he works for is an NGO, and thus, his salary and all other benefits are tax-free in the Philippines. He will eventually retire and he plans on moving back to Japan with his wife and two kids.

His question is: how will his pension be taxed once in Japan? Does Japan allow for personal allowances? And if so, what are the percentage rates of the tax? As far as we know, there is a Double Taxation Agreement between the Philippines and Japan, but we're not sure how that factors into things.
Also, does anyone know how long he can stay per annum without being tax liable? Or is he a permanent resident because he's a citizen?

Honestly, the best choice would be to obviously seek proper and professional help, but as we're based in the Philippines, we're unsure where to turn, so I thought to ask here. Apologies if this is in the wrong subforum!

Joe
 

Mike Cash

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Is his employer a Japanese NGO?

Your friend is an adult Japanese competent to work overseas but who can't google this stuff or contact the Japanese Embassy or the pension desk at his city hall back home but instead asks his non-Japanese friend to go online and ask a bunch of other foreigners, few of whom are in the Japanese pension schemes? That's mind boggling.

If his employer is Japanese, ask them. If not, start with the Embassy.
 

JoeRiley

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Point taken! This isn't an excuse, but he's a very busy and important man.

His employer is not a Japanese NGO. Basically, if he retires and stays in the Philippines, his pension is tax free. He doesn't want to stay here though, and wants to go back to Japan eventually, so we're just wondering if the "tax free pension" stops being that the moment it gets transferred over to Japan (which we suspect it does) but we're just looking specifically how tax liability works then.

Will definitely look into the embassy thing, thanks!
 

Mike Cash

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He's going to have to enroll in kokumin nenkin, but I guarantee he already knows that.
 

JoeRiley

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Assuming he retires at the age of 65, will he still have to register in the national pension scheme once he returns to Japan?

I do feel like I haven't been given enough and proper information by my mate. Apologies. I'll have to look for the tax treaty between the countries and sort of work of my from there I suppose.
 

Mike Cash

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He has to be enrolled and actually contributing to it. It isn't something you just apply for like welfare.

Your friend can't possibly have reached adulthood while being totally ignorant of this nor can he be incapable of going online and researching it himself or contacting the appropriate authorities to institute this. If he's too busy and important to look to this sort of thing himself then certainly he's important enough to have someone more competent to act as his proxy than us. Tell him to wipe his own rear end for a change; the stretch will do him good.

Here, I googled it for him: 年金について - 国民年金保険料 | 日本年金機構
 
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