I have a question regarding how to cash out crypto in Taiwan when your residency is also in Taiwan.
I am using an offshore exchange to benefit from the 6.7million of tax free earnings.
Now my question. Is there a bank that is accepting money that is being transfered from an exchange to a bank account?
I could never use my china trust bank card so far. Maybe Megabank might be an option? I do not want to use too many third person companies, because they charge a lot of fees for transfering money such as Wise.
I posses an APRC so that may help with opening such an account?
I am also not transfering a small amount, so that might be important to know. I plan to transfer something in the higher 6 digits area. I do have proof of funds and everything.
Can your exchange do a regular bank wire transfer using the swift system?
All major banks should be able to accept incoming funds of this type. You can ask your bank for swift details. I have used Megabank for this before, also Richart.
Do you maybe also know, if Taiwan only taxes the amount that has been cashed out to your bank? for example: If I change btc and eth to usdt or udsc worth of 500k+ on an exchange, that is not taxable according to this website, because I have not realised any gains until it is in my bank.
According to them, it will become taxable once I change it to NT$. If that is the case, it would make sense to cash it out over 2-3 years.
They announced some new crypto regulations late this year so I’m not sure how it’s treated now. Previously crypto was unregulated, so you could treat crypto wallets as on-shore or off-shore cash. You still need to declare AMT earnings past 1m and that’s where they could ask lots of questions, and who knows whether that particular tax officer will treat the income as AMT or regular income.
Personally I’d get residency in one of the capital gain free countries like Singapore, open a local exchange and cash out there.
Singapore is unfortunately no option for me. Otherwise I would have done it this way.
I still do have the option to cash out tax free in my home country, but I do not like the EU’s Mica and upcoming Mica 2. The same goes for the travel rule. I do want to reinvest during the next bear. Just preparing for the upcoming bull, as global M2 is rising.
Only local securities are untaxed. Foreign securities fall under the AMT rule. Crypto was unregulated, so it’s not clear whether it’s local or foreign.
well let’s assume I am going to sell my crypto through ledger live. How could that be local? They gotta find the buyer then and see if it is a taiwanese entity? Very unlikely. How are they going to handle something like uniswap or pancakeswap? That seems like foreign earned income to me.
Maybe cash out just enough to stay under AMT cut-off. I think that is around 5-6million NTD. Then cash out remainder next year. Or several years later, etc… It is also my understanding that under AMT cut-off there are no taxes to pay on any of this.
Your own crypto wallet could be seen as local, because you might have created the wallet while in Taiwan, or it travels with you to your tax resident country since you created it. So if you transfer money from your crypto wallet to your bank, that could be viewed as fully local. Actually when you remit money to a Taiwan crypto exchange and then transfer it to your local bank you don’t have to declare the reason. But when you remit USD to your local bank you do have to declare the reason for remittance. Because this is a grey area, transferring crypto is not considered inward remittance.
If you work with decentralized parties like uniswap, that can be viewed as foreign source income, but this area is unregulated, so you could also make a case that it’s local income. But it’s not local securities.
To avoid even more complications, send USD to a US broker or US bank by wire transfer (account to be created, and assuming you are not a US citizen, or you may face taxes!!!). Then from the US broker, send the USD to Taiwan.
thanks a lot. That sounds like a good plan. I am an EU citizen.
Germany and Portugal are also options, because they do not have captain gains tax, if you hold for more than a year, which I did.
Whatever you decide do your own due diligence of course. As an EU citizen you may be breaking EU rules by cashing out crypto off-shore and sending it around the world.
I cashed out some in HK but the HK based bank did call me a and asked questions . They said was it profits from investment…I said yes it’s profit from investments.
Was with Binance but you can see their issues now. For each time I cashed out they used a different entity to transfer the money. , you can see they have been a bit dodgy.
Local exchanges like bitpro and maicoin seem legit
I have been audited twice by maicoin when buying and transferring crypto out of maicoin. First time they asked for source of funds and proof of ownership of source (bank statements). Second time they asked for tax statements. Each time I bought and transferred about 100k and audit took a few days where funds were stuck in review. I stopped using them and switched to bitopro. So far bitopro has not audited my personal accounts.
