Leaving Japan: Bank account

9 comments

1. The pension withdrawal application cannot be done in Japan, you must have left Japan and your zairyu card hole punched as no longer valid. Make sure you sign out of your ward and ask for the documents before you go, if you’re still registered as living there it messes the whole process up. You take the documents to your bank in your home country and get them stamped, then send them back with your blue pension book to Japan and it will take up to 3 months for the lump sum to arrive in your bank.

2. 1) You can (edit: can’t) apply for the pension lump sum withdraw whilst still a resident.

   2) You need to speak to your bank if you want to try keep the account open.

   3) make sure your employer are aware that you’re leaving Japan before any money is paid to you because they will need withhold 20.42% non-resident tax at source from any money they give to you after you’ve left Japan.

3. I believe the company must pay you within 7 days of the end of employment if you request it.

4. You can get pension refund sent to a foreign accoun but you need someone living in the country to be your tax representative to get back the 20% tax back on the refund. This is paid to them so you might want to get your pay paid to them too.
   That said it’s unlikely you would get caught just leaving your account open but you run the risk of getting your money stuck. Don’t talk to your bank, there are laws that prevent the account remaining open. You can likely drain it via online transfers to wise or something like that

   Also set up tax representative before you leave the country otherwise it’ll be hard

5. If there’s any possibility that you might come back to Japan again to live or work, keep the account open. The bank *can* freeze your account if you cease to be a *tax* resident of Japan (there is a different type of account for non-tax-residents and individuals almost never bother with the hassle of creating one).

   >Will I be allowed to do online transfers to get the salary and 退職金 etc out of the mufg account to my new destination?

   This is realistically the easiest path. The banking system is (thankfully) not so tightly tied up with the immigration system or residential registration system to the point where your tax residency is tracked day by day. Thousands of Japanese people are living abroad full-time and still using their banks to pay utilities on their domestic homes, receive rent, pay off credit cards, etc. while not being tax residents of Japan.

6. Ask for cash. The law says that an employee can demand payment in cash. I’m sure someone will link it. Why would it take 2-3 months to finalise your final payment?

7. By regulation you are supposed to close your account when you leave Japan when no longer a resident or citizen. If there is a plan to come back (or in needs like your case), you should consult with your bank first and explain your situation. You do not want to risk your credit record and result in denial of entry at worst in the future.

   Also yes for foreign account for your lumpsum, you may also apply it at ward/pension office before you leave. If I remember correctly you may also pick a common currency of your choice (USD, AUD, EURO etc) as deposit.

8. I didn’t close my bank account when I left. The account was locked (deposit is possible but you can’t withdraw) when my residence card expired. I tried to close it but there is 1 yen interest left after I withdrew all the money. I was using Shinsei bank.

   I also cut my credit card few months after I was back to my home country, because the internet company needed to charge the last month bill.

9. I left my ufj account open last time I left japan so my company could transfer my last salary then gave my atm to my parents to withdraw it when they went here 6 months later so I don’t think you have to worry about them closing your account. My residence card was already past the date that time.