How crypto tax works in Taiwan
Taiwan classifies crypto as virtual commodities rather than currency, so gains are property-trading or miscellaneous income for individuals at progressive 5% to 40% rates with no holding discount.
Companies pay 20% on net crypto profits, frequent trading can add 5% business tax on turnover past the individual threshold, and salary or service tokens are ordinary income on receipt.
VASP real-name and AML registration feeds NTB audits, fair TWD valuation per event is expected, and MOF review promises more specific reporting ahead.
Tax rates at a glance
- Investor gains
- 5% - 40%
- Individual top rate
- 40%
- Corporate profits
- 20%
- Business turnover tax
- 5%
- Salary tokens
- Ordinary income
- Loss offset
- Restricted
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
Active tradersLong-term holdersFreelancers paid in cryptoExpatsFounders
Watch out for
- No holding discount means duration never softens the rate, which inverts planning brought from jurisdictions with patience rewards.
- Business-tax on turnover can exceed profit on high-volume low-margin trading, so frequent traders need turnover modelling alongside income bands.
- Losses deduct poorly outside business classification, which strands individual drawdowns without shelter.
- Securities-like tokens and banking-law edges create criminal as well as tax exposure, so token selection carries legal risk beyond rates.
Frequently asked questions
How is crypto taxed in Taiwan?
As virtual-commodity income: individuals pay progressive 5% to 40%, companies 20% on net profits, and frequent trading can add 5% business tax on turnover.
Is there a crypto holding discount in Taiwan?
No. Duration brings no rate benefit, and all net gains stack onto income regardless of holding period.
Does business tax apply to crypto trading?
It can for profit-seeking turnover past the individual monthly threshold, with 5% on revenue alongside income tax on profits.