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

Buying or selling Bitcoin, Ethereum, or any other cryptocurrency in Taiwan doesn’t mean you’re off the hook when tax season comes around. Even though digital assets aren’t legal tender, the government still wants its cut. And if you’re trading on BitoPro, MaiCoin, or Binance from Taipei, you’re already in the tax system - whether you realize it or not.

How Taiwan Treats Cryptocurrency

Taiwan doesn’t classify cryptocurrency as money. The Central Bank and Financial Supervisory Commission (FSC) have called it a "virtual commodity" since 2014. That label matters. It means you can’t use Bitcoin to pay your rent like you would with NT$1,000 bills. But it also means your crypto trades fall under existing tax laws for goods and income - not new crypto-specific rules.

This creates a messy situation. There’s no official crypto tax code. Instead, the Ministry of Finance (MOF) applies old rules to new tech. That means your gains or losses are treated like any other business transaction. And if you’re selling crypto, you’re likely selling a product - which triggers value-added tax (VAT).

VAT on Crypto Sales: The 5% Rule

If you’re a Taiwanese individual or business selling cryptocurrency, you owe a 5% VAT on your sales revenue. This applies whether you’re trading on a local exchange like BitoPro or selling directly to someone else. The good news? There’s a small exemption. If your monthly crypto sales are under NT$40,000 (about $1,300 USD), you don’t have to register or pay VAT. That’s meant for hobbyists and small-time traders.

But if you’re selling more than that - even if you’re just flipping a few ETH every month - you need to register as a business with the tax office. Once registered, you must report every sale. That includes trades between different coins. Swapping BTC for SOL? That’s a taxable event. You’re selling one asset to buy another, and the value of the BTC you gave up becomes your cost basis.

Foreign sellers have different rules. If you’re based outside Taiwan and selling to Taiwanese individuals, you still owe 5% VAT - unless your monthly sales to locals stay under NT$40,000. But if you’re selling only to Taiwanese businesses, you don’t pay VAT. The buyer does. That’s because Taiwan’s VAT system shifts responsibility to the purchaser when the seller has no local presence.

Income Tax: Your Profits Are Still Income

VAT isn’t the only tax. Your crypto profits are also subject to income tax - typically around 20%. This applies to anyone who makes money from trading, mining, staking, or even receiving crypto as payment for work.

Here’s where things get tricky. To calculate your taxable gain, you need to know your original purchase price. If you bought 0.5 BTC for NT$200,000 in 2021 and sold it for NT$800,000 in 2025, your profit is NT$600,000. That’s taxable income.

But what if you bought crypto years ago on a now-defunct exchange? What if you transferred coins from a wallet you no longer have records for? That’s a nightmare for both you and the tax authority. Without purchase records, the MOF may assume your cost basis is zero. That means your entire sale amount becomes taxable income. In some cases, that could push you into a much higher tax bracket.

There’s no official method for calculating cost basis in Taiwan yet. No FIFO, no LIFO, no averaging rules like in the U.S. That leaves you guessing - and risking an audit. Keeping detailed records isn’t just smart. It’s your only defense.

Who’s Responsible? Exchanges, Traders, and the Law

Taiwan’s major exchanges - BitoPro, MaiCoin, and Binance - are required to follow strict anti-money laundering (AML) rules. Since July 2024, all Virtual Asset Service Providers (VASPs) must register with the FSC. That means they collect your ID, proof of address, and transaction history.

Why does this matter for taxes? Because the MOF is waiting for full real-name verification before rolling out formal crypto tax reporting. Once every trade is tied to your identity, the government can match your exchange activity with your income tax filings. That’s the next step - and it’s coming.

On November 18, 2024, the Ministry of Finance announced it was reviewing cryptocurrency taxation. The trigger? A surge in crypto prices after Donald Trump’s election win. With more people jumping in, the current patchwork system is no longer enough. The MOF is likely to introduce mandatory reporting requirements soon - possibly as early as 2026.

Legal Gray Zones and Court Rulings

The law isn’t always clear. In 2023, a Taiwan High Court ruled that Bitcoin doesn’t count as "funds" under the Banking Act. That means a company accepting Bitcoin as payment isn’t automatically breaking the law by taking deposits. But in another case, a business was prosecuted for the same activity. Courts are still figuring this out.

This inconsistency creates risk. If you’re running a business that accepts crypto, you might be fine one day and facing charges the next. The same applies to staking rewards or DeFi yields. Are they interest? Income? Gifts? No one has a definitive answer.

What You Should Do Right Now

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

1. Track every transaction. Use a crypto tax tool like Koinly or CoinTracker. Record purchase dates, amounts, and prices in NT$. Include swaps, staking rewards, and airdrops.
2. Know your thresholds. If you’re selling under NT$40,000/month, you’re exempt from VAT. But if you’re making over NT$500,000/year in profits, you’re definitely liable for income tax.
3. Save your records. Screenshots, wallet addresses, transaction IDs - keep them all. The tax office won’t ask nicely. They’ll demand proof.
4. Don’t ignore foreign exchanges. Binance may not report to Taiwan, but you still owe taxes. The FSC is pushing for global data sharing. Your activity won’t stay hidden forever.

What’s Coming in 2025-2026

Taiwan is moving fast. The FSC already lists 24 approved VASPs. More will join. The Taiwan VASP Association is preparing industry standards. And the MOF is preparing tax forms.

Expect mandatory crypto tax reporting by mid-2026. The government will likely require exchanges to send annual reports directly to the tax authority - just like banks do for interest income. If you’re not ready, you’ll get hit with penalties, interest, or worse.

One thing’s certain: Taiwan won’t ban crypto. It’s too popular. Instead, it’s bringing it into the financial system - with taxes, rules, and oversight. The question isn’t whether you’ll pay. It’s whether you’ll pay fairly - or get caught by surprise.

Final Thoughts

Cryptocurrency in Taiwan isn’t a tax loophole. It’s a tax obligation in disguise. The rules are still being written, but the message is clear: if you profit from crypto, you owe taxes. Ignoring it won’t make it go away. The system is catching up - and it’s already watching.