Because a Class B wage earner's payer is located abroad, withholding doesn't happen automatically — the earner must either self-file and pay monthly, or join a Class B Taxpayer Association to handle it. The association receives monthly pay data, calculates the tax, and pays it to the relevant tax office by the 10th of the following month on the member's behalf.
Settling monthly through an association earns a 5% tax credit on the computed tax, reducing both the tax burden and the hassle compared to filing everything at once in May.
Joining a taxpayer association
What if I don't join one
Not joining isn't illegal — you can self-file and pay monthly instead — but you'd miss the 5% credit and have to handle everything yourself. Most Class B earners join an association for the convenience and the tax savings.
Frequently Asked Questions
Related Topics
Class B Wage Earners — When Your Salary Comes From Abroad
What "Class B" wage income means when your paycheck comes directly from an overseas employer, and how to file through a Class B Taxpayer Association.
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