Hi Everyone,
Tax season is around the corner and I’m wondering what are the taxes on cryptocurrency in Taiwan ?
I’ve been trading a little bit and made some rather good gains and I am wondering if and how I should declare this in my tax declaration, and how are the profit taxed ?
I can’t seem to find relevant information on this, and my chinese not good enough to read it all by myself (and not asking a friend to help me, don’t want to expose my holdings…).
Anyone been thru this before ?
Thanks.
I don’t think you need to declare unless a business operating an exchange etc.
I might be wrong though . It’s definitely not clear what constitutes profits.
Every time I buy or sell any crypto (on BitoPro) I get the receipt for it, does that mean I paid the tax?
I think the seller pays the sales tax on the service ? They need to account to the government as they are registered businesses in Taiwan.
I don’t know exactly what is happening but govt will be focused on the businesses trading crypto . Also if you are cashing in and out large amounts into NTD that may raise more flags . My personal feeling is that we are okay sitting in crypto holdings but I could be wrong . It’s not clear.
Oh yes, should be like that, I think I’ve read that before.
What’s considered by “large”?
Haha, hopefully. What’s the worst-case scenario?
I read Chinese article mentioning 6% tax on profits is what you could report.
Over 200k a month earnings. There no clarity on the area. I’m not bringing it up personally until the govt announces some clear policy.
it’s actually not a bad idea to spread although KYC is becoming more and more strict in that sense.
I don’t have issue with my home country (western europe) as they can’t tax a non-resident unlike the US, so I just want to be compliant with local tax authorities here.
I guess if I move small chunk from time to time it would fly under the radar, but if I’d like to turn my crypto say to buy a car or a house, that would not go unnoticed I believe … so not sure how it works there.
I could always say I’m moving my savings from my home country to Taiwan using cryptos to save bank fees and have faster transactions speed, they can’t probably check that, but who knows …
It’s still easy to hide because you don’t buy a car or house in cash unless you’re stupid. Interest rates are so low, it’s wiser to use your money for other investments. Your returns will cover the interest and more easily.
Something similar although I don’t have to worry about US tax law. But I’ve Started verifying myself on platforms and its already helped me recover one account through big brother face recognition quickly.
The biggest concern is losing access to our accounts and getting hacked. Taxman number 3 for me.
It may go unnoticed, probably will go unnoticed as you do it in multiple batches. .But yes there is a chance they may start asking. It’s my impression they don’t have a clear policy yet. Need to check with the tax accountants. Is an uncobvertes crypto currency a gain ? Then wouldn’t all currencies gains have to be reported? Right right ? And millions of Taiwanese have multiple currency accounts. It gets complicated quickly.
I have accounts all over the place and only one major account with a Taiwan exchange that I used to buy in and cash out (limited ) amounts . That’s the one I’m wondering about as it’s linked in to my bank account , fully verified KYC blah blah .
Taiwan is just lax right now about the whole crypto space . For a while tether was even running most of their money thru here so they aren’t as lax as before though.
They are lax about everything tax related luckily.
You mean Tether was using Taiwanese banks? I didn’t get the last part.
Correct, at least for a while. And they are well dodgy.
Taiwan banks (semi govt owned ) were also given huge fines by US authorities for some kind of money laundering but as for the details I was never able to get…Some dodgy stuff.
The only reason that racket stopped was because the US put pressure on the Taiwanese banks. Makes you wonder what other stuff is going on under the radar…
I’m in a simular situation, from Guanxi as well. What do you use when you try to swap btc to other cryptos?
I didn’t know that crypto swapping is a taxable event(in countries such as US, Australia, etc.). 0.o
Still wondering where to find info about crypto regulation in Taiwan. I’m into staking and liquidity providing, I really don’t see the point of taxing until the moment of getting FIAT out.
Hi guys, people from BitoPro told me taxes on gains on trading crypto are still unregulated. Do you think if I withdrew amounts like 50-100k a month (NTD) would go unnoticed?
In my opinion going legit and KYC in your big accounts is better . When things go wrong you can get access back again easier and maybe lodge complaints etc. But I’m not American so don’t need to deal with taxes there.
Yeah technically anytime you transact crypto you would need to calculate the capital gain/loss against your cost basis, for US taxes.
From my understanding simply transferring money across exchanges is not taxable, since there’s no gain or loss. ie I moved my crypto from Coinbase to Blockfi and it shouldn’t be taxable. But what’s interesting is then the exchange will lose track of what my cost basis is, so I dunno… Maybe it is taxable and the exchange you transfer out of records your gain/loss at that time.
There are decentralized exchanges on which you can remain anonymous, but to get actual cash money in and out you’d have to work with a legit exchange and do KYC.
I suppose if you were PAID in crypto, and spent crypto, you could avoid reporting taxes, but I don’t think that’s the case for anyone.
I’m not a US citizen, also there are no means for Taiwan to report my income to my home country since non-existent relations. I earned trough DeFi liquidity provision so it can be considered as trading I guess. It’s unregulated. If anyone has any experience let me know.
This is probably the most important piece of advice in this thread so far.
Except, most countries are not treating cryptocurrency as currencies. That is the problem.They are treating crypto as an investment, so any gain you have is a capital gain, and thus subject to tax, depending on where you are a tax resident, and where you have tax responsibilities.