Measures
Taiwan's Ministry of Finance recently submitted a report to the Legislative Yuan, clarifying the taxation rules for cryptocurrency transactions. According to the report, the National Taxation Bureau has uncovered over NT$130 million in unreported cryptocurrency income, resulting in more than NT$34 million in additional taxes and fines.
Taxation Details
The Ministry of Finance has categorized cryptocurrency taxation based on its nature:
- Securities-like Cryptocurrencies
Transactions involving cryptocurrencies classified as securities are treated as “securities transaction gains or losses.” While Taiwan no longer levies a securities transaction tax, companies must include these gains in their minimum taxable income under the Alternative Minimum Tax regulations. - Non-Securities Cryptocurrencies
- For Individuals: Non-frequent transactions are taxed as “property transaction income” and included in personal income tax filings.
- For Companies: Cryptocurrency profits are taxed under the standard corporate income tax framework.
International Comparisons and Trends
Taiwan's approach to cryptocurrency taxation differs from other nations. South Korea, for instance, has delayed its dedicated crypto tax law until 2027, while Japan is considering reducing its tax rate for crypto-related income. Taiwan has chosen to adjust its existing legal framework and prioritize cracking down on tax evasion.