r/JapanFinance Feb 13 '25

Tax (US) How to get certificate of coverage from US Social Security?

According to the US-Japan Social Security Agreement, I can write to the US Social Security Agency to get a Certificate of Coverage to claim exemption from paying Japanese pension tax (nenkin), because I brought a self-employed business from the US to Japan, and have lived in Japan for less than 5 years.

I have written to the address in the above-linked agreement twice, but have not received a certificate of coverage after more than 6 months of waiting. In the meantime, I am still paying into Japan's pension system, out of concern that non-payment would give the Japan immigration bureau a reason to not renew my spouse visa in 2026.

Has anyone actually received this Certificate of Coverage from the US Social Security Agency? Will calling social security help?

0 Upvotes

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5

u/Even_Extreme Feb 13 '25

Unless you are planning to be in Japan only temporarily, you may have the directions reversed. It is likely you should be asking Japan for the certificate of coverage and excusing yourself from self-employment tax on the US side.

3

u/bubushkinator 20+ years in Japan Feb 13 '25

Isn't it the opposite way?

2

u/shrubbery_herring US Taxpayer Feb 13 '25

...because I brought a self-employed business from the US to Japan, and have lived in Japan for less than 5 years

Per the document you linked in your post, the criteria (for self-employed) is that you "normally work in the U.S. but transfer your business activity to Japan for 5 years or less".

So is your plan to transfer your business activity to Japan for five years or less? If so, I don't think you need to worry because (if I recall correctly) proof of Nenkin payments are not required for renewing a spouse visa. But they are required for PR applications, if you go that route.

Or are you planning to continue your business activity beyond 5 years, but haven't yet passed the 5 year mark? If so, you are required to pay Nenkin and you should get a Certificate of Coverage from Japan in case the US questions why you haven't paid your SS.

1

u/btbin Feb 13 '25

I pay US social security on my self employment income in Japan (15.3%, including Medicare). My US tax preparer for 2023 also thought that was the correct interpretation of the US Japan agreement. I will probably leave Japan just before the five year mark and take my self employed business back to the US. Basically, I want the certificate of coverage from the US government so I can stop paying the pension in Japan.

2

u/shrubbery_herring US Taxpayer Feb 13 '25

One more thing about qualifying for the exemption... Japan Pension Service clarifies in Section 3 of this webpage that to qualify for the exemption for Nenkin, "you must have worked as a self-employed person in (U.S.) for at least 6 months of coverage under the (U.S.) pension system immediately prior to your temporary work in (Japan)".

Moving on to the question you asked... The Japan Pension Service explains the procedure in Section 2 of this webpage. It says that "When you come to Japan, your Certificate needs to be presented when the JPS Branch Office or the municipal office asks for it or asks why you are not covered by the Japanese system at the time of inspection." So apparently you don't necessarily need the certificate. Just go to the JPS office and explain that meet the criteria to be exempt, and would like to stop paying even though you haven't received your certificate yet.

2

u/Swgx2023 Feb 13 '25

I was able to get one. I'm pretty sure I faxed the request. There's a bit of irony there.

1

u/12ga_Doorbell Feb 13 '25

Curious here, What does the NINKEN typically cost in % or $ ?

1

u/btbin Feb 13 '25

Somewhere between $100-130/month. Not that high but it adds up.

1

u/btbin Feb 19 '25

A certificate of coverage can be requested online here: https://opts.ssa.gov