What is the lump-sum collection of resident tax?

Lump-sum collection of resident tax is a method where, upon resignation, any remaining resident tax is paid in a lump sum from your final paycheck.

Normally, you would pay this yourself using a payment notice sent by the local government after resignation,
but with lump-sum collection, the amount is deducted in full from your final paycheck.

The payment method may vary depending on when you resign.
If you resign between January and May, the law requires that the remaining resident tax be paid in a lump sum from your final paycheck.

On the other hand, if you retire between June and December, you will typically be subject to “standard collection,” where you pay the tax yourself after retirement; however, you can choose lump-sum collection if you wish.

Resident tax is an important tax that must be paid even after you leave your company.
Therefore, to avoid any unexpected payment difficulties after retirement, it’s a good idea to check with your company’s representative or your Registered Support Organization in advance.