Taiwan’s Ministry of Finance has clarified that P2P platform operators managing loan fund transfers must withhold tax, file reports and issue certificates on interest paid to lenders.
Taiwan’s Ministry of Finance issued an interpretive ruling on 6 August 2026 clarifying that online lending platform businesses (P2P platform operators) must withhold tax on interest income paid to lenders when they manage the transfer of loan funds.
The ruling requires P2P platform operators to comply with the withholding, reporting and certificate-issuance requirements under Articles 88, 89 and 92 of the Income Tax Act. Borrowers are not required to separately handle withholding on the same interest payments.
P2P operators treated as withholding agents
The Ministry of Finance said online lending platforms have developed rapidly in recent years, with some operators taking a role beyond simply matching lenders and borrowers.
Certain P2P operators participate in setting lending rates, manage lending transactions and charge service fees to both parties. Loan interest may be transferred through banks or electronic payment institutions under the platform’s instructions, or collected and paid directly by the platform.
Because P2P operators exercise substantive control and management over the transfer of funds, the Ministry considers them to be the payers of interest income under Article 7, Paragraph 5 and Article 89 of the Income Tax Act.
As a result, they are treated as withholding agents when paying loan interest to lenders.
Withholding and reporting requirements
Under the ruling, P2P platform operators must carry out the applicable withholding procedures when paying interest income to lenders.
They must also meet the relevant filing and certificate requirements under Articles 88, 89 and 92 of the Income Tax Act, including issuing withholding or non-withholding certificates where required.
The clarification means borrowers do not have to separately undertake withholding procedures for the interest paid through the platform.
Treatment of earlier interest payments
The Ministry said the ruling takes effect from 6 August 2026, the date of issuance.
For interest income paid before that date, lenders must report the interest received in their annual income tax filings.
P2P platform operators are not required to retroactively issue or file withholding or non-withholding certificates for interest payments made before the ruling was issued.
