In addition to your standard allowances, your pensions (Japan, Uni & UK) should be eligible for the Public Pension Deduction...
You should consult a professional
https://www.nta.go.jp/taxes/shiraberu/s ... df/050.pdf
Page 10, 22-23
Public pensions - Income of the National Pension, the Employee Pension, defined benefit corporate pensions, defined-contribution pensions, other public pensions and certain foreign pensions, etc.
Assuming Allowances
Basic Allowance - 480,000 National, 430,000 Residents'
Spouse Allowance - 380,000 National, 330,000 Residents'
Without the Public Pension Deduction
2,000,000 - 380,000 - 380,000 = 1,240,000 Taxable Income
1,240,000 * 5.105% = 63,302 National & Reconstruction Taxes
1,290,000 * 10% + 5,000 = 134,000 Residents' Taxes
63,302 + 134,000 = 204,302 Total Taxes
However, if your Pension Income (Japan, Uni & UK) is all eligible for the Public Pension Deduction
https://www.tax.metro.tokyo.lg.jp/book/ ... k2021e.pdf
See the table on Page 8
Different for Under 65 and Over 65
For Under 65
and Pension(s) in the band ¥1,300,000 to ¥4,100,000
And Any other Income is ¥10,000,000 or less
Then, the Public Pension Deduction would be calculated as
Income from Public Pensions × 25% + ¥275,000
So, if your total pension is Y2,000,000, and you have very little other income, then The Public Pension Deduction would be
¥2,000,000 /4 + ¥275,000 = 500,000 +275,000 = 775,000
Add in any other deductions such as Insurance Policies, Medical Expenses over 100,000 per year, etc.,
480,000 + 380,000 + 775,000 (+ Others) = 1,635,000 (+ Others) Total Allowances and Deductions
2,000,000 - 1,635,000 (+ Others) = 365,000 (- Others) Taxable Income
to be taxed at 15.105% (5% National, 0.105% Reconstruction, and 10% + 5000 Residents' Taxes)
365,000 * 5.105% = 18,633 National and Reconstruction Taxes
Residents' Deductions
430,000 + 330,000 + 775,000 (+ Others) = 1,535,000 (+ Others) Total Allowances and Deductions
2,000,000 - 1,535,000 = 465,000
465,000 * 10% + 5,000 = 51,500 Residents' Taxes
18,633 + 51,500 = 70,133 Total Taxes (compared to 204,302 Total Taxes above)
Over 65
and Pension(s) in the band under ¥3,300,000
And Any other Income is ¥10,000,000 or less
Then, the Public Pension Deduction would be
¥1,100,000
So, if your total pension is Y2,000,000, and you have very little other income, then The Public Pension Deduction would be
Add in any other deductions such as Insurance Policies, Medical Expenses over 100,000 per year, etc.,
1,100,000 + 480,000 + 380,000 (+ Others) = 1,960,000 (+ Others) Total Allowances and Deductions
2,000,000 - 1,960,000 (+ Others) = 40,000 (- Others) Taxable Income
to be taxed at 15.105% (5% National, 0.105% Reconstruction, and 10% + 5000 Residents' Taxes)
40,000 * 5.105% = 2,042 National and Reconstruction Taxes
Residents' Deductions
1,100,000 + 430,000 + 330,000 (+ Others) = 1,860,000 (+ Others) Total Allowances and Deductions
2,000,000 - 1,860,000 = 140,000
140,000 * 10% + 5,000 = 19,000 Residents' Taxes
2,042 + 19,000 = 21,042 Total Taxes (compared to 204,302 Total Taxes above)
The Japan Sourced Pension Income should be paid net of Withholding Tax 5.105% (5% National, 0.105% Reconstruction Taxes).
(I'm not sure if they will also withhold the 10% + Y5,000 Residents' Taxes)
(I'm not sure if they will take into account the Public Pension Deduction or withhold tax on the gross amount)
(2,000,000 x 5.105% = 102,100 National and Reconstruction Taxes, if calculated on Gross)
(2,000,000 x 10% = 200,000 Residents' Taxes, if calculated on Gross)
(102,100 + 200,000 = 302,100 Total Taxes, if calculated on Gross)
If your Pensions are eligible for the Public Pension Deduction, then the final tax rate would be
21,042 / 2,000,000 = 1.05%
Other Deductions, that I omitted above would bring that down to Zero. See TBS's post following.
However, with Foreign Sourced Pension Income you must file the Kakutei Shinkoku.
Under the terms of the UK-Japan Tax Treaty,
http://www.mof.go.jp/tax_policy/summary ... n-UKEN.pdf
Article 17
Subject to the provisions of paragraph 2 of Article 18 of this Convention, pensions and other similar remuneration beneficially owned by a resident of a Contracting State shall be taxable only in that Contracting State.
there should be no UK Tax on the UK Pension, so no need to file a Foreign Tax Credit, unless you have other income that incurs foreign taxes.
Health Insurance Premium, National Pension Contributions, etc., will then be calculated based on the Taxable Income from the previous Tax Year.
in the first year after retirement, they will be high, based on your last employment year's income, but from the second year should settle down to the retirement level. See links in TBS's message below.
You should consult a professional.
You should confirm whether your pensions are all eligible for the Public Pension Deduction.
You may have to file a return to claim the additional Allowances and Deductions against Japanese Pension Income (even before your receive UK Pension).
You will have to file a return to claim additional Medical Expenses over Y100,000, and/or Furusato Nozei, or other deductions, including ongoing Japanese National Pension or UK National Pension Contributions (even before your receive UK Pension).
You will have to file a return when you receive your UK Pension Income.
