Cryptocurrency Taxation in Taiwan: What Traders Need to Know in 2025
25 January 2025

Taiwan Cryptocurrency Tax Calculator

Calculate Your Taiwan Crypto Taxes

This tool calculates your value-added tax (VAT) and income tax obligations based on Taiwan's current cryptocurrency tax regulations.

If monthly sales exceed NT$40,000, you must pay 5% VAT on all sales

Tax Calculation Results

VAT Calculation

Your monthly sales are currently below the NT$40,000 threshold.

VAT Amount (5%): NT$0

Income Tax Calculation

Profit: NT$0

Income Tax (20% of profit): NT$0

Important: Record-keeping is critical. Without proof of purchase price, tax authorities may assume the entire sale amount is profit.

Note: Taiwan's tax rules are evolving. Check for updates as we approach 2025 regulations.

Buying or selling Bitcoin, Ethereum, or any other cryptocurrency in Taiwan isn’t just a tech move-it’s a tax event. Unlike countries with clear crypto tax laws, Taiwan doesn’t have a dedicated crypto tax code. Instead, it uses existing rules for business and income tax to handle digital assets. That means if you’re trading crypto in Taiwan, you’re likely already under tax obligations-even if you didn’t realize it.

Is cryptocurrency taxable in Taiwan?

Yes. The Ministry of Finance treats cryptocurrency as a virtual commodity, not money. That classification matters because it triggers two main taxes: business tax (VAT) and income tax. There’s no special crypto tax form, no official guidance labeled "Crypto Tax Guide 2025," and no exemption just because you bought Bitcoin on your phone. If you’re making money from trades, the government expects you to report it.

The confusion comes from outdated information. Some people still think crypto is tax-free because it’s not legal tender. But Taiwan’s tax authorities have been applying existing laws since at least 2014. The Financial Supervisory Commission (FSC) warned about Bitcoin back then, and since then, the rules have only tightened.

Business tax (VAT): 5% on sales

If you’re selling cryptocurrency in Taiwan, you might owe a 5% value-added tax (VAT). This applies whether you’re a business or an individual. The key is your monthly sales volume.

  • If your total monthly crypto sales are under NT$40,000 (about US$1,300), you’re exempt.
  • If you hit or exceed NT$40,000 in a month, you must register for a business tax ID and pay 5% VAT on all sales.

This rule applies to everyone: Taiwanese residents, foreign residents living in Taiwan, and even foreign companies with a physical office here. If you’re a foreign seller with no office in Taiwan, the rules get trickier. If you sell to Taiwanese individuals, you must register and pay VAT. If you sell only to Taiwanese businesses, those businesses pay the VAT instead.

Real-world example: You bought 0.5 BTC for NT$150,000 in early 2024. In June 2025, you sold it for NT$300,000 on BitoPro. Your monthly sales hit NT$300,000-way over NT$40,000. You now owe 5% VAT on the full NT$300,000, not just the profit. That’s NT$15,000 in VAT alone.

Income tax: 20% on profits

On top of VAT, you owe income tax on your net profit from crypto trading. Taiwan’s personal income tax rate for trading gains is around 20%. But here’s the catch: you need to prove your cost basis.

Let’s say you bought 1 ETH for NT$25,000 and sold it later for NT$45,000. Your profit is NT$20,000. You owe 20% of that-NT$4,000 in income tax.

But what if you can’t prove what you paid? Maybe you bought it years ago on an app that no longer exists. Maybe you got it as a gift. Without purchase records, the tax office can’t calculate your gain. In practice, they might assume your entire sale amount is profit-and tax you on that.

That’s why keeping records is not optional. Save screenshots of transactions, wallet addresses, exchange statements, and receipts. Even if you’re just a hobbyist trader, the tax authorities can audit you. And they’re getting better at tracking crypto flows through exchanges.

A girl trades crypto on a tablet while a floating checklist reminds her to track, save, and report, with cartoon tax inspectors nearby.

Who’s responsible? Traders, platforms, and regulators

Taiwan’s crypto exchanges aren’t just platforms-they’re part of the tax system now. Since July 2024, all crypto trading platforms operating in Taiwan must register as Virtual Asset Service Providers (VASPs) with the FSC. That means they have to collect real-name IDs, track transactions, and report suspicious activity.

Major exchanges like BitoPro, MaiCoin, and Binance all comply. That’s good news for you. As these platforms get more transparent, tax authorities can cross-check your reported income against exchange data. If you claim you made NT$50,000 in profits but your exchange shows NT$200,000, you’ll get flagged.

The government is also moving to classify certain crypto assets as securities. If a token is deemed a security under the Securities and Exchange Act, it’s subject to stricter rules-including capital gains tax and reporting requirements similar to stocks.

What’s changing in 2025?

In November 2024, Taiwan’s Ministry of Finance announced it would review crypto taxation rules. Why? Prices surged after the U.S. election, and trading volume in Taiwan jumped 140% in just six months. The current system-based on old VAT and income tax laws-isn’t keeping up.

Expect new rules by late 2025 or early 2026. Possible changes:

  • Specific crypto tax forms or reporting categories
  • Clear rules on how to calculate cost basis (FIFO, LIFO, etc.)
  • Direct data sharing between exchanges and the tax office
  • Penalties for unreported gains

Right now, enforcement is patchy. But that’s changing fast. The FSC has approved 24 AML-compliant exchanges. That’s not random-it’s a signal that regulation is here to stay.

A child follows a treasure map through Crypto Tax Adventure landmarks, guided by a robot dog, under a moon shaped like a crypto coin.

What you should do right now

You don’t need to wait for new laws. Here’s what to do today:

  1. Track every transaction. Use a crypto tax tool like Koinly or CoinTracker. Export your wallet and exchange history. Save PDFs of all trades.
  2. Calculate your monthly sales. If you hit NT$40,000 in any month, register for a business tax ID at the local tax office.
  3. Keep cost basis records. Note the date, amount, and price of every purchase. Even if you bought on a peer-to-peer platform, keep screenshots.
  4. Report income. Include crypto gains in your annual income tax return. Don’t wait for a letter from the tax office.
  5. Don’t assume anonymity. Exchanges report to the government. Your wallet address isn’t hidden.

Many people think they can avoid taxes by using offshore exchanges. That’s risky. If you’re a Taiwan resident, you’re taxed on worldwide income. Even if you trade on Binance or Kraken, the Taiwanese tax office can still demand records.

What happens if you don’t pay?

Penalties can be severe. Fines for underreporting income can reach 200% of the unpaid tax. In extreme cases, tax evasion can lead to criminal charges. Courts have already prosecuted businesses for illegally accepting crypto as payment under the Banking Act-even though Bitcoin isn’t legal tender.

One 2023 court case in Taipei involved a company that accepted Dogecoin for services. The court ruled the company didn’t violate banking laws because crypto isn’t "funds." But the tax office still taxed the income. The legal gray area exists, but the tax consequences don’t.

Final reality check

Taiwan doesn’t have a perfect crypto tax system. It’s messy, inconsistent, and still evolving. But it’s not a free zone. The government is watching. The exchanges are reporting. The rules are being enforced.

If you’re trading crypto in Taiwan, you’re in the tax system. Ignoring it won’t make it go away. The sooner you start tracking, recording, and reporting, the less stress you’ll face when the next tax season comes.

There’s no magic loophole. No exemption for "small traders" beyond the NT$40,000 threshold. No legal way to avoid income tax on profits. The only safe path is transparency.

Is cryptocurrency legal in Taiwan?

Yes, cryptocurrency is legal to own and trade in Taiwan. However, it’s not legal tender. Financial institutions like banks and ATMs cannot process Bitcoin or other crypto transactions directly. Trading is allowed through licensed exchanges, and users can hold crypto in personal wallets. The government regulates exchanges as Virtual Asset Service Providers (VASPs) under anti-money laundering laws.

Do I have to pay tax if I only hold crypto and don’t sell?

No, you don’t owe tax just for holding cryptocurrency. Taxes are triggered only when you sell, trade, or exchange crypto for goods, services, or other digital assets. Simply buying and holding Bitcoin, Ethereum, or any other coin is not a taxable event under Taiwan’s current rules.

What if I trade crypto on Binance or another foreign exchange?

You still owe taxes in Taiwan if you’re a resident. The tax obligation follows the person, not the platform. Whether you trade on BitoPro, Binance, or a peer-to-peer app, your gains are subject to Taiwan’s income tax and VAT rules. The tax office can request transaction data from foreign exchanges through international cooperation agreements.

Can I use loss carryforwards to reduce my crypto tax?

Currently, Taiwan does not allow crypto losses to offset other income or be carried forward to future years. Unlike some countries, you can’t use a loss from selling Bitcoin to reduce your tax on stock gains or salary. Each trade is treated as a standalone taxable event. Keep records of losses anyway-they may matter if tax rules change.

Do I need to pay tax on crypto received as payment for work?

Yes. If you’re paid in cryptocurrency for freelance work, services, or employment, the value of the crypto at the time you receive it is considered taxable income. You must report this as part of your annual income tax return. The amount is based on the New Taiwan Dollar value on the day you received it, not the price later when you sell it.

Are NFTs taxed the same as cryptocurrency in Taiwan?

Yes. NFTs are treated as virtual commodities under Taiwan’s tax system. If you sell an NFT for a profit, you owe 5% VAT if your monthly sales exceed NT$40,000, and 20% income tax on the gain. Buying NFTs with crypto is also a taxable event-it counts as selling the crypto you used to buy it.

What happens if I gift crypto to someone in Taiwan?

Gifting crypto is not a taxable event for the giver, but the recipient may face tax liability if they later sell it. The recipient inherits the original cost basis of the crypto. For example, if you gifted 1 ETH that you bought for NT$20,000, and the recipient sells it for NT$50,000, they owe tax on NT$30,000 profit. There’s no gift tax in Taiwan for crypto, but record-keeping is critical.

How do I register for a business tax ID in Taiwan?

If your monthly crypto sales exceed NT$40,000, visit your local tax office (財政部國稅局) with your national ID card and proof of trading activity. You’ll fill out Form 0401 (營利事業登記申請書) and receive a business tax ID number. Once registered, you must file monthly or quarterly VAT returns. Many traders use a tax accountant to handle this process.

If you’re trading crypto in Taiwan, the clock is ticking. The government isn’t waiting for you to catch up. Start organizing your records now. The next tax season could be the one where everything changes.

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