Bitcoin big pump makes money! Lai Shih-pao: Taiwan should levy income tax on encryption, what does the Ministry of Finance say

Trump's victory sparked a surge in BTC, and taxation of investment profits became the focus

After the election of US President-elect Donald Trump, there was a sharp Fluctuation in the global financial markets, with the price of Bitcoin soaring, breaking through the $90,000 mark. This surge ignited the enthusiasm of retail investors, and many people have made substantial profits from it. However, this has also led to legislative attention to the taxation of Cryptocurrency trading.

The Finance Committee of the Legislative Yuan convened a meeting on November 18th, during which Kuomintang lawmaker Lai Shih-pao questioned the Ministry of Finance's tax measures on individual exchanges of Crypto Assets. He pointed out that currently, only business tax and income tax on profit-making enterprises are imposed on Crypto Asset exchanges, and there are no clear tax regulations for individuals or corporations profiting from such transactions. He further emphasized, 'Who would be so foolish as to voluntarily pay taxes?' and urged the Ministry of Finance to take the initiative and improve the taxation mechanism for encryption.

Source: Screenshot of the Legislative Yuan Finance Committee. Kuomintang Legislator Lai Shih-pao emphasized that the Ministry of Finance should take the initiative to improve the taxation mechanism for encryption.

The Ministry of Finance promises to formulate tax measures within three months.

In response, Minister of Finance Chuang Tsui-yun stated that with the Ministry of Digital Development defining cryptocurrencies as 'virtual assets' rather than 'currency', related exchanges should be treated as property exchanges and subject to individual comprehensive income tax.

She said, "Since it is defined as virtual assets, related transactions should be taxed, and profits should be subject to income tax." Chuang Cuiyun promised that the Ministry of Finance will formulate preliminary tax measures within three months and strengthen the inspection of cryptocurrency transactions.

The Director of the Taxation Department of the Ministry of Finance, Song Xiuling, also stated that there are currently strengthened audit measures and that the transaction situation can be understood through other data sources. She pointed out that the Financial Supervisory Commission is studying the establishment of special laws to manage cryptocurrency transactions, and the Ministry of Finance will cooperate with the formulation of these laws to improve the taxation mechanism. Regarding individual transactions, Song Xiuling emphasized: 'Now there is strengthened auditing, and the income from buying and selling can be regarded as income from property transactions and declared in personal comprehensive income tax.'

Digital service tax issues have resurfaced, and the Ministry of Finance has stated that collection has already begun.

Lai Shih-Pao emphasized that the taxation of cryptocurrency transactions and digital services is related to the fairness of national tax revenue and fiscal income. The Ministry of Finance should actively face it. He urged, 'The problem now is that the Ministry of Finance has not taken action and has not actively levied taxes.' He hopes that the government can formulate relevant regulations as soon as possible to ensure a sound and fair tax system.

The Ministry of Finance stated that it will continue to pay attention to the international taxation trends of Crypto Assets and digital services, and will adjust the tax system in a timely manner in conjunction with Taiwan's actual situation to safeguard the national financial interests and maintain a fair competitive environment in the market.

『BTCbig pump made money! Lai Shibo: Taiwan should impose income tax on encryption, what does the Ministry of Finance say?』This article was first published in the 'encryption city'.