A 退職金支給通知書 documents the calculation of the retirement allowance: the gross amount, the
retirement-income deduction (退職所得控除), the taxable retirement income, the income-tax and
resident-tax withholding, and the net amount paid. It is the worker's primary record for tax
purposes and serves as proof of receipt. For the employer it is the per-worker artifact that ties
the payment to the company's retirement-allowance regulation and to the 退職所得 tax regime.
1. Years of service
Computed from the gap between hire date and termination date, with any partial year rounded up.
For 退職所得控除 purposes, a worker with one day past their 16th anniversary still counts as 17
years. The template applies this rule automatically.
2. Retirement-income deduction (退職所得控除)
The single biggest tax break in the Japanese severance regime. For 20 years of service or less,
the deduction is the greater of ¥800,000 and ¥400,000 multiplied by years of service. For more
than 20 years, it is ¥8,000,000 plus ¥700,000 for each year over 20. Long tenures stack: 30 years
of service produces a deduction of ¥15,000,000 against gross severance.
3. The 1/2 rule
After the deduction is applied, the remaining amount is halved before progressive income-tax
brackets apply. Combined with the deduction, this typically produces a much lower effective tax
rate on severance than on regular wages, and the income does not stack on top of other annual
income. The result is one of the most tax-favored income categories in Japanese tax law.
4. The tax-filing declaration toggle
When 退職所得の受給に関する申告書 (the retirement-income tax declaration) is submitted before
payment, withholding uses the deduction and the 1/2 rule. When it is not submitted, withholding
is a flat 20.42% on gross with no deduction applied: typically much higher, refundable later via
a year-end tax return. The standard practice is to have the worker submit the declaration before
payment so the lower rate applies in the first place. Toggle this off if you genuinely received
no declaration.
5. Resident tax
A flat 10% of the same taxable retirement income. Withheld at source under the special-collection
procedure, separate from the next year's regular resident-tax cycle.
6. Edit anything that doesn't match your case
Click Edit on the toolbar above the preview and the notice becomes editable in
place. Use this for: deferred or installment payment schedules, allocations between several
beneficiaries (in the case of a deceased worker), references to a specific
retirement-allowance-regulation article, or carve-outs for stock-based components.
7. Export to PDF
Click Download as PDF, enter your email, and the file generates locally in your
browser. Whatever language is currently visible in the preview is what gets exported.
Edge cases worth knowing
- If your Work Rules do not provide for severance, the employer is not legally required to pay.
A separation agreement (退職合意書) with a 解決金 line is often a cleaner vehicle for
ad-hoc payouts than a severance payment notice.
- For dismissal with serious misconduct, your retirement-allowance regulation may permit
forfeiture or reduction. Apply that procedure carefully and document the decision; courts
review forfeiture strictly.
- If the worker is covered by a defined-contribution plan or DB pension that pays alongside
severance, the deduction is calculated combining all such payments in the same year.
- If the worker has had a prior 退職所得 payment in the past four years (typically from a
prior employer or a corporate-officer payout), the deduction is reduced for overlapping years
of service. The declaration form requires the worker to disclose this, which is one practical
reason to insist on receiving the declaration.
- Have the final wording reviewed by a labor and social security attorney (社会保険労務士),
certified tax accountant (税理士), or qualified legal counsel for any non-standard or
contested case.