Recently, I’ve been researching Taiwan’s cryptocurrency taxation regulations and found that many people are still a bit unclear about withdrawing funds and reporting taxes. So, I’ve organized the current situation.

Honestly, Taiwan’s approach to taxing cryptocurrencies is still in the exploratory stage. According to the latest statement from the Ministry of Finance last year, profits from cryptocurrency trading are classified as “property transaction income,” which needs to be included in income tax declarations. But there’s a key point often overlooked: the focus of taxation isn’t on where you withdraw funds from, but on where you profit from trading.

In simple terms, if you trade cryptocurrencies on a domestic exchange and make a profit, that’s considered domestic income and should be included in your annual comprehensive income for tax calculation. But if you trade on an overseas exchange and transfer the profits back to Taiwan, that becomes offshore income and must be included in your basic income calculation. The taxation methods for these two situations are completely different, and that’s very important.

One figure worth noting: according to the National Taxation Bureau’s statistics, by the end of last year, they had uncovered over 129 million NT dollars in underreported cryptocurrency trading income, with additional taxes and fines exceeding 34 million NT dollars. This indicates that tax authorities are indeed increasing their scrutiny in this area. Also, if you withdraw more than 500k NT dollars in a single transaction, banks are obliged to report to the Investigation Bureau, so keeping all transaction and fund transfer records is really necessary.

The way to calculate taxable amounts depends on what kind of income you have. For domestic income, you add your trading net profit to your annual salary, investment income, and all other income, and pay tax according to progressive rates. But you must be able to provide proof of your initial investment costs. Offshore income is a bit more complicated; amounts exceeding 1 million NT dollars need to be declared. If your combined domestic and foreign income exceeds 7.5 million NT dollars, the excess is taxed at a basic 20% income tax rate.

I’ve seen some people trying to use on-chain operations to transfer Taiwanese income directly overseas for tax avoidance, but this is really risky. Tax authorities are tightening regulation on cryptocurrencies, and such practices can easily be deemed tax evasion, potentially leading to back taxes, fines, or even criminal charges. The legitimate way to reduce taxes is to declare property transaction losses as special deductions, but only if you report your income legally.

Regarding withdrawal methods, many ask about overseas wire transfers. Using an overseas exchange to wire USD to a Taiwanese USD account, small amounts (under $50,000 USD) usually have lower fees—around $13 USD—and typically arrive within 1-2 business days. For larger amounts, some exchanges charge even lower fees but may require proof of the source of funds.

Overall, cryptocurrency taxation is still evolving. The Ministry of Finance plans to introduce a Virtual Asset Management Act soon, which may provide clearer regulations. Until then, the safest approach is to keep detailed records of all transactions, clearly distinguish between domestic and foreign income, and report what needs to be reported according to law. If you’re unsure about your situation, consulting a professional accountant or tax advisor is definitely worth the investment.