The Ministry of Finance issued a press release stating that the income/loss generated from the exchange between cryptocurrency and fiat currency or between cryptocurrencies is considered income/loss from property transactions from a direct tax perspective. However, apart from the specific rules issued by the Financial Supervisory Commission (referred to as the “FSC”) and the Taiwan Stock Exchange for securities-type tokens, there is no specific guidance or legislation regarding the collection of GST/VAT on cryptocurrency transactions/exchanges.
In 2019, the FSC and the Taiwan Stock Exchange issued regulations on securities-type tokens (referred to as “ST regulations”). Tokens issued in Taiwan under the ST regulations 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”).