Payment of Pension, Health Insurance Premiums, and Taxes in a Permission for Permanent Residence Application

Regarding Payment of Pension

Enrollment in and payment of public pension is an obligation for foreign nationals living in Japan as well. Public pension includes National Pension and Employees’ Pension; you must be enrolled in one of them and make payments. If you have past unpaid pension amounts, this works against you in a Permission for Permanent Residence application, so please be careful.

The Review Period

Records of pension enrollment and payment are, as a general rule, required for the most recent 2 years. (For those with 80 or more Highly Skilled Professional points, and similar cases, the submission is for the most recent 1 year.)

If Your Pension Payment Is Late

Pension premiums must be paid by the last day of the month following the month subject to payment. If you have not paid by the payment deadline, you will receive a “payment recommendation,” a notice that your payment is overdue and asking you to pay. If you do not pay even after receiving a payment recommendation, a “final demand notice” is sent. If you do not pay by the deadline specified in the final demand notice, a “demand letter” is issued, and if you do not pay by the deadline in the demand letter, you must also pay a “late payment charge” covering the period from the payment deadline to the actual date of payment. And if there are pension payment delays within the most recent 2 years, the likelihood of a Permission for Permanent Residence application being denied is extremely high. In any case, if you notice that your pension payment is late, it is important to pay it as soon as possible.

If You Have Unpaid Pension

If you do not pay pension premiums within 2 years of the payment deadline, they become unpaid. They will not be reflected in the future pension amount you receive, nor counted toward the qualifying period for benefits. In addition, if your pension is unpaid, the Permission for Permanent Residence application will be denied.

Documents Proving Payment of Pension

The documents proving payment of pension are the following 2.

Regarding Payment of Health Insurance Premiums

Enrollment in health insurance and payment of health insurance premiums are also obligations for foreign nationals living in Japan. Health insurance is a system to reduce the burden when visiting a medical institution due to illness or injury. There are 2 types — National Health Insurance, which the self-employed and freelancers enroll in, and employee insurance, which company employees enroll in — and it is standard to enroll in one of them. If you are not enrolled, you bear the full medical cost, and those with an obligation to enroll who fail to do so may be subject to a fine. Of course, if you are not enrolled or have not paid your health insurance premiums, this works against you in a Permission for Permanent Residence application.

The Review Period

Records of having paid health insurance premiums are, as a general rule, required for the most recent 2 years. (For those with 80 or more Highly Skilled Professional points, and similar cases, the submission is for the most recent 1 year.)

If Your Health Insurance Premium Payment Is Late

The response when health insurance premium payment is late differs depending on the operator of the health insurance (the insurer), but generally, since payment cannot be confirmed, a “demand” to pay is issued, and if there is still no payment, an “urging” is issued. If you do not pay by the deadline indicated in the urging, payment of a late payment charge is also required. In such cases, even if you have paid the health insurance premiums including the late payment charge, if there are health insurance premium payment delays within the most recent 2 years, the likelihood of a Permission for Permanent Residence application being denied is extremely high. In any case, if you notice that your health insurance premium payment is late, it is important to pay it as soon as possible.

If You Have Unpaid Health Insurance Premiums

If you do not pay health insurance premiums and they become unpaid, your health insurance card becomes unusable. In the case of National Health Insurance, you may be switched to a short-term insured card with a short validity period, or asked to return your insured card. And if you have not paid your health insurance premiums, the Permission for Permanent Residence application will be denied.

Documents Proving Payment of Health Insurance Premiums

The documents required to prove payment of health insurance premiums are as follows.

Regarding Taxes

Foreign nationals living in Japan, like Japanese nationals, have an obligation to pay various taxes. The taxes covered are the following 6 types.

The Review Period

Resident tax is, as a general rule, reviewed for the most recent 5 years. (For those with 70 or more Highly Skilled Professional points, materials supporting the payment status for the most recent 3 years are submitted to the Immigration Bureau; for those with 80 or more, the most recent 1 year.) In addition, for withholding income tax and special reconstruction income tax, declared income tax and special reconstruction income tax, consumption tax and local consumption tax, inheritance tax, and gift tax, there must be no unpaid amounts as of the time of the Permission for Permanent Residence application.

If Payment Is Late

Taxes must be paid within the deadline, and if you cannot pay within the deadline, a delinquent tax accrues for the period from the day after the statutory payment deadline to the date of payment. This point is more severe than for pension or health insurance premiums, so caution is required. And, as a general rule, if there are payment delays for resident tax and the like within the most recent 5 years, the likelihood of a Permission for Permanent Residence application being denied is extremely high.

If You Are Delinquent on Taxes

Even if tax payment is late, as long as you pay the tax including the delinquent tax, the tax is, for the time being, considered paid. However, if you do not pay tax by the payment deadline and become delinquent, a demand letter is sent, and if you still do not pay, delinquency disposition is enforced and your property is seized. Furthermore, if you remain delinquent, the fact of delinquency will also be recorded on your tax payment certificate. If you are delinquent on taxes, the Permission for Permanent Residence application will be denied.

Documents Proving Payment of Taxes

For resident tax, you prove that you have fulfilled your tax obligations over the most recent 5 years through the following 3 types.

For withholding income tax and special reconstruction income tax, declared income tax and special reconstruction income tax, consumption tax and local consumption tax, inheritance tax, and gift tax as well, submission of tax payment certificates for all 5 tax items is required.

Can You Still Obtain Permission for Permanent Residence Even If There Were Unpaid or Late Payments?

You might think that even if pension, health insurance premiums, and taxes were unpaid or paid late, it would not be a problem as long as you pay them by the time of the Permission for Permanent Residence application. However, what the Immigration Services Agency of Japan checks intensively is not whether you have paid all the premiums or taxes as of the time of application, but whether you have paid the premiums and taxes by the statutory payment deadlines. If there are unpaid or late payments, they may be weighed against you in the review, making it difficult to obtain Permission for Permanent Residence. In particular, if you have changed jobs or had a period of unemployment within the 2-year or 5-year period, there may be periods during which pension, insurance, and taxes were not automatically withheld from your salary. The premiums and taxes for these periods must be paid by you yourself by the set payment deadlines, so please be careful.

Please Consult a Specialist Early Regarding Permission for Permanent Residence Applications

In a Permission for Permanent Residence application, it is important to have paid pension, health insurance premiums, and taxes by the payment deadlines. Pension and health insurance premiums are, as a rule, 2 years’ worth, and resident tax is 5 years’ worth, so you need to keep paying with the deadlines in mind over a fairly long period. The systems for pension, health insurance premiums, and taxes are complex, and for foreign nationals who are not familiar with them, there may be systems that are hard to understand. In such cases, please consult a specialist. Administrative scriveners can also advise on which premiums or taxes are important in relation to a Permission for Permanent Residence application, and where necessary, can guide you to consult a labor and social security attorney, a tax accountant, a pension office, a tax office, and so on. Our office provides full support for Permission for Permanent Residence (Permanent Residence status) applications. If you satisfy the requirements for the “Permanent Resident” Status of Residence, we proceed with the procedures swiftly; if you do not, we provide precise advice on what is lacking. If you are considering a Permission for Permanent Residence application, please consult “Administrative Scrivener Corporation Touch.”