Recently, many people have mentioned the topic of "Is tax payable on Crypto Assets trading?" This is indeed worth discussing. Especially as the pace of relevant legislation accelerates, the Ministry of Finance is also considering how to strengthen the tax audit mechanism. Let's take a look at the related trends.

Recently, the American political scene has been quite lively, especially with Trump's election as president, which seems to have sparked a wave of "celebration" in the market. The price of Bitcoin once soared to $93,000, setting a new record. However, over here in Taiwan, the tax issues related to Crypto Assets have also garnered attention. Kuomintang legislator Lai Shih-pao expressed his concerns, primarily focusing on the taxation of Crypto Assets trading in Taiwan. Finance Minister Chang Tsui-yun responded by stating that profits from Crypto Assets trading are actually subject to income tax, but since it is "self-reported," she also admitted that the "review mechanism can be further strengthened" and promised to discuss related measures within three months.

Today, the Finance Committee of the Legislative Yuan reviewed the relevant budget proposals from the Ministry of Finance, with Zhuang Cuiyun leading the heads of relevant departments to accept inquiries. During the questioning, Lai Shibao took the opportunity to raise the tax issue regarding Crypto Assets trading: "Many people have made money through this channel, so has the National Tax Bureau imposed taxes on them?"

In fact, Wu Lianying, the director of the Taipei National Taxation Bureau, mentioned that 26 virtual asset operators have completed compliance declarations in accordance with the Anti-Money Laundering Act and registered for tax purposes, paying business tax and income tax.

Regarding the issue of personal income tax, Song Xiuling, head of the tax department, pointed out that Crypto Assets are not currency but a type of "digital asset." Therefore, the profits from related transactions can be regarded as "property transaction income" for taxation and must be declared in the "individual comprehensive income tax." If a loss occurs in the transaction, it can be declared as a property transaction loss for deduction.

Song Xiuling also mentioned that the National Taxation Bureau now has digital tools to audit transaction situations to prevent underreporting. In the future, after the establishment of laws related to Crypto Assets by the Financial Regulatory Commission, new audit measures will be implemented, and the Ministry of Finance will cooperate.

However, Lai Shibao still questions that even with an auditing mechanism, unreviewed transactions will not actively pay taxes. In response, Zhuang Cuiyun emphasized that since Crypto Assets have been defined as virtual assets and not currency, as assets, their transactions should be subject to income tax. Next, it is necessary to explore how to conduct audits and discuss this part.

Zhuang Cuiyun promised that within three months, a method to enhance the tax audit of Crypto Assets trading profits will be developed.

What do you think of this trend? Do you feel the absolute trend of Crypto Assets trading moving towards normalization? Feel free to leave a message to chat! 📈💬

Note: This article does not constitute investment advice and is for reference only.