Three Major New Trends in Cryptocurrency Taxation According to PwC Report, Taiwan Lacks Cryptocurrency Tax Guidelines

The Ministry of Finance issued a press release stating that income/loss generated from the exchange between cryptocurrency and legal tender or cryptocurrency is considered income/loss from property transactions from the perspective of direct taxation. However, apart from the securities-type tokens issued by the Financial Supervisory Commission (referred to as “FSC”) and the Taiwan Stock Exchange according to specific rules, there is no specific guidance or law regarding the collection of GST/VAT on cryptocurrency trading/exchange.

In 2019, the FSC and the Taiwan Stock Exchange issued regulations on securities-type tokens (referred to as “ST rules”). Tokens issued in Taiwan under the ST rules are considered “securities”. Transactions of such securities-type tokens are not subject to Goods and Services Tax (GST/VAT), but are subject to Securities Transaction Tax (referred to as “STT”).