1. The Ultimate Standard of “Good Conduct” Is Required
In the sections explaining applications for change of status of residence or for extension of period of stay, you learned that the Minister of Justice grants such permissions only when there are reasonable grounds. You also learned that such reasonable grounds include good conduct and the fulfillment of tax payment obligations, etc.
For these applications, the question is how correctly the applicant has lived as a member of Japanese society. Now we can say that the application for Permanent Residence is the examination in which the highest standard of good conduct is tested.
In particular, perfect compliance is required with respect to the payment of tax and social insurance premiums such as health insurance and pension premiums.
For salary earners (such as employees of a company), income tax, resident tax, health insurance premiums, and pension premiums are usually withheld from salary and paid by the employer on the employee’s behalf. As long as one is employed by a properly managed company, there is generally little cause for concern.
However, sole proprietors and owners of small companies must file their own tax returns each year and pay taxes personally. They are also required to pay premiums for National Health Insurance and National Pension on a monthly basis, or every three or six months, at a bank or a convenience store. It is quite common for these people to be so busy that they accidentally miss a month’s payment deadline.
In applications for permanent residence, applicants are required to submit proof of payment (receipts) for your National Health Insurance and National Pension premiums for the past two years. Cruel as it is, if these records reveal that even a single payment was made one day late during those two years, this may be regarded as a serious negative factor in the examination process.
2. If You Become Unable to Pay Taxes or Social Insurance Premiums
Going off topic a little, if you become unable to pay taxes or social insurance premiums due to circumstances such as unemployment or long-term hospitalization, applying for permanent residence will not be a realistic option at that time. If you unfortunately fall in such a situation, you should without delay contact your municipal government office and the pension office nearby, explain your situation, and request a grace period of payment.
Also, I may be able to connect you with some organizations related to SMJ (Solidarity Network with Migrants Japan)—a non-profit organization of which I am a member. These organizations or network may be able to provide support. If you are a foreign national who is experiencing difficulties as above mentioned and happen to be reading this page, please do not hesitate to contact our office. We will do our best to assist you.
3. Which Is Easier to Obtain: Status of Permanent Residence or Japanese Nationality?
This is a question we are asked from time to time, but it is not easy to answer. They should not be simply compared as they serve different purposes.
From a practical standpoint, however, they have major common benefits: there is no limitation on the period of stay, and one may continue to live in Japan even after changing jobs or leaving employment altogether. For foreign nationals who wish to live in Japan on a long-term basis, it is therefore natural to consider and compare these two options.
The eligibility requirements for permanent residence and naturalization differ in many respects. First of all, the minimum period of residence required before applying is different. Also as explained above, the examination for permanent residence is said to be stricter with respect to the payment of taxes and social insurance premiums, whereas the examination for naturalization is considered stricter when it comes to violations of laws and regulations.
When deciding between the two, it is important not only to compare which set of requirements may be easier for you to satisfy, but also to take carefully into consideration such as your parents in your home country, your family in Japan, and where you ultimately wish to spend the later years of your life, etc.