Taiwan has just clarified an important part of its crypto tax rules.
On September 3, 2026, the Ministry of Finance confirmed that the purchase, sale or transfer of qualifying virtual assets such as Bitcoin, Ethereum and stablecoins is outside the scope of Taiwan business tax (VAT).
👉 In simple terms, Taiwan does not impose 5% VAT on the value of your Bitcoin or USDT transaction itself.
But this does not mean crypto is tax-free in Taiwan.
▌What if you are simply trading crypto for yourself?
For an individual investor, VAT is usually not the main issue.
The more important question is income tax.
Profits from Bitcoin, ETH, USDT or other virtual assets may still need to be reported in Taiwan, depending on factors such as:
▪ your Taiwan tax residency
▪ how the income is characterized
▪ whether it is Taiwan-source or foreign-source
▪ your acquisition cost and transaction records
One important point for foreign residents:
👉 Using Binance, Coinbase or another overseas exchange does not automatically make your crypto gains “foreign income.”
Likewise, using a Taiwan exchange does not automatically mean the gains are Taiwan-source.
The income source should be analyzed based on the actual transaction structure and Taiwan tax rules.
▌What if you charge fees or operate an OTC business?
This is different from simply investing your own money.
For example:
🪙 NT$1 million Bitcoin transaction
→ outside Taiwan VAT
💰 NT$10,000 OTC or transaction fee
→ payment for a service
→ Taiwan VAT rules may apply
So if you regularly help others trade crypto, charge service fees or operate a crypto-related side business in Taiwan, additional registration, VAT and income tax obligations may arise.
▌NFTs are treated differently
Taiwan’s new ruling also makes clear that NFTs are not automatically treated the same way as Bitcoin or stablecoins.
NFTs may represent specific:
🎨 digital artwork
🎮 gaming assets
🖼 collectibles
or other unique rights.
If you regularly create or sell NFTs for profit, the activity may be treated as a business and fall within Taiwan’s VAT rules.
For services, the current business tax registration threshold is generally:
👉 NT$50,000 in monthly sales
However, this does not mean every NFT sale is automatically subject to 5% VAT. The actual treatment depends on the nature and scale of the activity.
📌 The key takeaway
If you are a foreigner living in Taiwan:
Bitcoin / ETH / stablecoin transactions
→ generally outside Taiwan VAT
Crypto trading profits
→ may still be subject to Taiwan income tax
OTC or service fees
→ may be subject to Taiwan VAT
NFT business activities
→ may also fall within Taiwan VAT rules
Overseas exchange
→ does not automatically mean foreign-source income
For foreign residents, the more useful question is therefore not simply:
“Is crypto taxable in Taiwan?”
It is:
What type of crypto activity are you doing, and where is the resulting income considered to arise?
LY CPA advises foreign residents in Taiwan on crypto taxation, including individual trading gains, Taiwan-source vs. foreign-source income, NFT activities, OTC businesses and historical tax filing issues.
🔗 LY CPA Virtual Currency Tax Advisory
