You can qualify for a Canadian or Japanese advantage or both. However, according to the agreement, the benefit paid by each country is exclusively related to your eligible periods under that country`s pension program. In other words, Canada pays an amount that reflects the portion of your periods that can be credited under Canada`s pension program, and Japan pays an amount that reflects the portion of your eligible periods under the Japanese pension program. It should be kept in mind that Japan has social security agreements with a number of countries. Most of these are “totalization agreements” in which pensions paid in Japan can be charged on the qualification of pensions in other countries (and vice versa). However, even if your country has such an agreement with Japan, you are absolutely not entitled to benefits under the Japanese pension system if you have already applied for the lump sum payment option. Pension income tax is essentially calculated in the same way as other income tax. According to the Tokyo Japanese Pension Service office, retirees are not required to report their income if the pension is their sole source of income or if they work less than six hours a day and less than 20 days a month. If they have income from other sources, such as rent, then they must file a tax return (kakutei shinkoku). If in doubt, contact the tax area at your local office. The old Age security program includes most people who live or have lived in Canada.
The old-age pension is paid from the age of 65 to people who meet certain conditions of residence. To qualify for this pension in Canada, you generally must have lived in that country at least 10 years after the age of 18. As a general rule, you need 20 years of living in Canada after the same age to get an old-age pension outside of Canada. This reader talks about a good point about the differences between kokumin nenkin and k`seinkin. Kokumin nenkin is paid at a fixed rate for all regardless of income. Currently, those registered in kokumin nenkin are required to make monthly payments of $15,590. With this rate, he will give an annual pension of $780,100 after retirement. Are Japanese pensions treated here as taxable income? Do retirees have to file a tax return? Currently, the following countries have totalization agreements with Japan. On the website of the Japanese Pension Service, you will find details on the various agreements: Australia, Belgium, Brazil, Canada, Czech Republic, France, Germany, Hungary, Ireland, The Netherlands, Spain, Switzerland and the United States.
India and Luxembourg have signed agreements, but they are still in force. A number of other countries are in the process of signing agreements, so this list is likely to grow in the future. The agreements with Italy, South Korea and the United Kingdom concern only the “suppression of double coverage” and not totalization. If you have lived or worked in Japan and Canada, or if you are a survivor of someone who has lived or worked in Japan and Canada, you may be entitled to a pension or benefits from Japan or Canada, or both. The Canadian pension programs included in the agreement are the Pension Canada Plan and the Old Age Security Program. Among the questions that readers of the Japan Times send to the Lifelines section, a permanent theme is navigation in the Japanese pension system. In this expanded specific section, we will address some of the issues received over the past few months. In the United States, after the signing of the agreement, the President will submit the agreement to Congress, where it will have to be reviewed for 60 days of session.