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

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

Cryptocurrency Tax Calculator

Calculate Your Taiwan Crypto Taxes

This calculator helps you estimate your potential tax obligations when trading cryptocurrency in Taiwan based on current regulations.

Your Tax Estimate

Profit/Loss
VAT (5%)
Income Tax (20%)
Total Tax

Important Note: This is an estimate based on current regulations. Taiwan's crypto tax laws are evolving rapidly, and proper documentation is critical for tax compliance. All gains are subject to income tax regardless of VAT exemption status.

Remember: The Ministry of Finance may require documentation of your transactions. Keep records of all purchase dates, amounts, and prices in NT$.

Learn more about Taiwan tax regulations

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.

A person surrounded by floating crypto transaction records and a tax agent offering a ledger in a Taipei apartment.

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.

Traders submitting crypto data to a futuristic tax office as a countdown to mandatory reporting appears on screen.

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.

Do I have to pay tax if I only trade crypto under NT$40,000 per month?

You’re exempt from 5% VAT if your monthly crypto sales stay under NT$40,000. But if you’re making profits from trading - even small ones - those gains are still subject to income tax. The VAT exemption doesn’t cancel your income tax responsibility.

What if I bought crypto on Binance and never reported it?

Binance doesn’t report to Taiwan’s tax office - yet. But the FSC requires all VASPs to use real-name verification. Once that’s fully implemented, the Ministry of Finance will have access to your trade history. If you’ve made profits and didn’t report them, you’re at risk of back taxes, penalties, and interest. Start tracking now and consider filing amended returns if needed.

Are staking rewards taxable in Taiwan?

Yes. Staking rewards are treated as income when you receive them. If you earn 0.5 ETH as a reward, its value in NT$ at the time of receipt becomes taxable income. You’ll need to record the price on the day you received it. There’s no exemption for passive income from crypto.

Can I deduct losses from crypto trading?

Taiwan doesn’t have formal rules for crypto loss offsets yet. But if you can prove a loss through documented transactions, you may be able to reduce your taxable income in future years. Keep detailed records of every sale, even at a loss. The tax office may accept them as proof of net gains over time.

Do I need to register as a business to trade crypto?

Only if your monthly sales exceed NT$40,000. At that point, you must register for VAT with the tax authority. Even if you’re trading as a hobby, once you cross that threshold, you’re legally a small business. Failing to register can lead to fines and back taxes.

18 Comments

  • Image placeholder

    Stanley Wong

    December 6, 2025 AT 01:27

    Man i just bought some solana last week and thought i was being slick not reporting it but now i see the tax office is gonna have my trade history anyway
    guess i better dig up those old wallet screenshots before they come knocking
    why do they make this so complicated

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    Nicole Parker

    December 6, 2025 AT 07:48

    i think what people miss is that taiwan isn't trying to crush crypto, they're trying to bring it into the system like stocks or real estate
    the fact they're using existing tax laws instead of making new ones is actually smart
    it means less bureaucracy and more consistency
    sure it's messy right now but that's because the tech is new, not because the government is being unreasonable
    if you're making money off it, you should pay taxes on it, plain and simple

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    Kenneth Ljungström

    December 7, 2025 AT 21:39

    just started using koinly last month and it saved my sanity
    my wife thought i was losing it tracking every single swap but now i have everything in one place
    even my airdrops from like 2021
    and yes i know binance doesn't report yet but i'm not waiting for the government to catch up
    my records are clean and i sleep better at night 😊

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    Brooke Schmalbach

    December 9, 2025 AT 18:26

    you people are acting like this is some groundbreaking revelation
    every country with a functioning tax system treats crypto as property
    the fact you're surprised means you were either willfully ignorant or hopelessly naive
    and if you think you can outsmart the tax authority with a defunct exchange and no records you're not just dumb you're asking for trouble
    your cost basis isn't a suggestion it's a legal requirement

  • Image placeholder

    Cristal Consulting

    December 10, 2025 AT 00:42

    track everything. even the tiny trades. even the swaps.
    it's not hard. use a tool. do it once. thank yourself later.
    you don't need to be a tax expert to be compliant.
    just be organized.

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    Tom Van bergen

    December 11, 2025 AT 06:54
    taxes on crypto are just the state trying to monetize your freedom
    if you want to trade digital assets why should you need permission
    the blockchain was built to escape this exact system
    now they're coming for your wallet
    next they'll tax your memes
  • Image placeholder

    Sandra Lee Beagan

    December 13, 2025 AT 00:58

    as someone who's lived in both canada and taiwan i can say the vasp registration system here is actually quite advanced
    the fsc is doing a better job than most regulators
    yes the tax rules are vague but that's because they're trying to avoid overreach
    the real issue is individuals not keeping records not the policy
    if you're doing this right you have nothing to fear

  • Image placeholder

    Ben VanDyk

    December 14, 2025 AT 20:52

    the article says you owe vat on sales over 40k but doesn't clarify if that's gross revenue or net profit
    that's a huge difference
    if you're buying low and selling high on a 100k volume your profit might be 10k
    but if they tax the full 100k you're getting screwed
    who wrote this

  • Image placeholder

    michael cuevas

    December 16, 2025 AT 18:44

    so if i swap btc for doge and make 50k profit and then swap it back to btc
    do i pay tax twice
    because that's what it sounds like
    and if i hold it for 5 years and then sell
    do i pay tax on the same 50k again
    because the system is literally designed to punish you
    thanks taiwan

  • Image placeholder

    Nina Meretoile

    December 17, 2025 AT 12:02

    just remember: if you earned it, it's taxable
    staking rewards, airdrops, even that free nft you got
    it's all income
    but here's the good part
    you're not alone
    everyone's figuring this out together
    and you don't have to do it alone
    use a tool, ask a friend, take a breath
    you got this 🌱

  • Image placeholder

    Barb Pooley

    December 18, 2025 AT 17:13

    they're using this to track us
    real name verification
    exchange data sharing
    next they'll link your crypto to your health records
    and your bank account
    and your social media
    they want to know everything you do
    and if you're not careful they'll freeze your wallet before you even know what hit you
    don't trust them

  • Image placeholder

    Shane Budge

    December 19, 2025 AT 23:22
    what's the penalty for not reporting?
  • Image placeholder

    Adam Bosworth

    December 20, 2025 AT 02:57

    you think you're being smart by holding onto your coins
    but the government is watching your every move
    your wallet address is already flagged
    your ip is logged
    your exchange account is tied to your id
    they know you bought 3 eth in 2022
    they know you sold it in 2024
    they know you didn't pay taxes
    and they're coming for you
    you think you're safe because binance doesn't report
    but they're not waiting for you to make a mistake
    they're waiting for you to panic

  • Image placeholder

    Uzoma Jenfrancis

    December 20, 2025 AT 15:14

    in nigeria we don't even have this problem
    we trade crypto because the naira is garbage
    we don't care about vat or income tax
    if you're in taiwan and you're worried about paying tax on crypto
    you probably shouldn't be trading in the first place
    focus on survival not taxation

  • Image placeholder

    Renelle Wilson

    December 21, 2025 AT 10:37

    it's important to recognize that the current ambiguity in taiwan's crypto tax framework stems not from negligence but from deliberate caution
    the ministry of finance is operating within the constraints of existing statutory frameworks that were never designed for decentralized digital assets
    therefore the application of value-added tax and income tax principles represents a pragmatic, risk-averse approach to regulatory evolution
    the absence of formal cost basis methodologies does not imply legal vacuity but rather a transitional phase during which market participants are expected to exercise diligence and maintain comprehensive documentation
    this is not punitive
    it is preparatory

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    Elizabeth Miranda

    December 22, 2025 AT 02:42

    my cousin in taipei just got a letter from the tax office asking for his 2023 crypto trades
    he didn't report anything
    he's now scrambling to get his records together
    he's lucky he didn't lose them
    don't be like him

  • Image placeholder

    Chloe Hayslett

    December 22, 2025 AT 13:04

    oh wow taiwan is taxing crypto
    next they'll tax oxygen
    and then they'll tax your breath
    and then they'll tax your heartbeat
    because capitalism needs to monetize everything
    even your dreams
    and if you don't pay you get a fine
    and if you can't pay you go to jail
    because freedom is just a tax bracket

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    Jonathan Sundqvist

    December 23, 2025 AT 03:57

    if you're still using binance and thinking you're safe
    you're not
    they're already sharing data with taiwan
    they just haven't told you yet
    the fsc has been talking to binance since last year
    they're not waiting for 2026
    they're already gathering evidence
    your trades are already on their servers
    you just don't know it yet

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