Taiwan Crypto Tax Guide
Taiwan cryptocurrency taxation for 2026. The guide covers: the no specific crypto tax law — Taiwan does NOT have the dedicated cryptocurrency tax legislation; the crypto assets are treated as the "property" (the "財產") under the general tax principles; the gains may be tax-free — the capital gains from the crypto trading may be treated as the "securities-like income" (the "證券交易所得") which is tax-exempt under the current law, OR as the "business income" (the "營利所得") if the trading is frequent and substantial; the mining and staking — the crypto mining and staking income are treated as the "other income" (the "其他所得") or the "business income".
Crypto Classification Under Taiwan Tax Law
- No specific crypto law: Taiwan does NOT have the specific legislation for the cryptocurrency taxation. The Ministry of Finance (the "財政部") has issued the administrative guidance (the "解釋函令") treating the crypto assets as the "virtual commodities" (the "虛擬商品") rather than the "currency" or the "securities". The tax treatment is determined under the general Income Tax Act (the "所得稅法") and the business tax rules.
- Treated as property (財產): The crypto assets are classified as the "property" (the "財產") for the tax purposes. This means the crypto transactions are subject to the capital gains tax rules applicable to the "property transactions" (the "財產交易所得"). However, the key distinction is whether the crypto gains are treated as the "securities transaction gains" (tax-exempt) or the "business income" (taxable at 5% to 40%).
- No VAT on crypto trading: The crypto trading is generally exempt from the VAT (the "營業稅" at 5%). The Ministry of Finance has confirmed that the crypto trading platforms are NOT required to charge the VAT on the crypto transactions. However, the crypto mining equipment sales and the crypto-related services (the "consulting, the wallet services") are subject to the VAT.
Tax-Free Gains — Securities-Like Treatment
- Securities transaction tax exemption: Taiwan does NOT impose the "securities transaction tax" (the "證券交易稅") or the "securities transaction income tax" (the "證券交易所得稅") on the domestic securities trading. By analogy, the crypto gains from the "occasional" or the "investment" trading may be treated as the "securities-like gains" and may be tax-free.
- Holding period and frequency: The long-term holding (the "超過一年" — the "more than one year") and the infrequent trading (the "非經常性交易" — the "non-frequent trading") support the "investment" classification. The gain is characterised as the "securities transaction gain" (the "證券交易所得") which is currently tax-exempt.
- Risk of recharacterisation: The large-volume or the frequent trading (the "高頻交易") increases the risk of the recharacterisation as the "business income" (the "營利所得") by the tax authorities. The "intent" and the "pattern" of the trading are the key factors.
Taxable Crypto Income — Business and Other Income
- Frequent trading — business income (營利所得): The individual who trades crypto frequently, professionally, or as the primary source of income may be treated as the "dealer" (the "營業人") and the gains are taxed as the "business income" at the marginal rates of 5% to 40%. The business income classification requires the business registration (the "營業登記") and the VAT registration.
- Mining income — other income (其他所得): The crypto mining income (the "挖礦所得") is treated as the "other income" (the "其他所得") or the "business income" depending on the scale. The individual miner with the home-based operation reports the mining income as the "other income" at the marginal rates. The commercial miner with the industrial-scale operation must register as the business and report the mining income as the "business income".
- Staking and DeFi income: The staking rewards (the "質押獎勵") and the DeFi interest income are treated similarly to the mining income — as the "other income" or the "business income". The income is taxable at the time of the receipt at the market value in TWD.