Taiwan’s Ministry of Finance clarified that businesses selling virtual assets and stablecoins defined under the Virtual Asset Service Act were not subject to business tax.
Taiwan’s Ministry of Finance (MoF) issued an interpretation ruling on 3 September 2026 clarifying that businesses selling virtual assets and stablecoins defined under the Virtual Asset Service Act are not subject to business tax.
The clarification covered virtual assets and stablecoins defined under Article 3, Items 1 and 6 of the Virtual Asset Service Act, which was enacted and promulgated on 22 July 2026.
Virtual asset sales
The Ministry said the clarification reflected the rapid development of the digital economy and blockchain technology, as well as increasing domestic virtual asset trading activity and international approaches to taxing virtual assets.
Under Taiwan’s Value-Added and Non-Value-Added Business Tax Act, payment instruments and investment instruments used for savings and preservation of value are not consumptive in nature. Their transfer therefore falls outside the scope of business tax.
Article 3, Item 1 of the Virtual Asset Service Act defines virtual assets such as Bitcoin and Ether as assets used for payment or investment purposes. Stablecoins defined under Item 6 are also classified as virtual assets under the Act and constitute multi-purpose payment instruments.
Accordingly, businesses selling such virtual assets are not subject to business tax.
Service fees remain taxable
The Ministry said its approach was consistent with international practice. Jurisdictions with value-added business tax systems similar to Taiwan’s, including the United Kingdom, Germany, Canada, Japan, Singapore, Australia, New Zealand, South Korea and Indonesia, as well as the European Union, have classified virtual assets as payment instruments or financial services. Transactions involving them are likewise generally outside the scope of business tax.
However, service fees or handling fees collected by virtual asset service providers for providing virtual asset exchange or other related services to customers under Article 6 of the Virtual Asset Service Act remain subject to business tax as consideration for the sale of services.
NFTs remain subject to tax
The Ministry also clarified that Non-Fungible Tokens (NFTs) are not currently virtual assets as defined under the Virtual Asset Service Act.
As NFTs are digital assets or goods representing value with specific characteristics and non-substitutability, including specific artworks, collectibles or real estate, their sale by businesses is subject to business tax. Using NFTs to exchange goods or services with others is also treated as a taxable sale of services.
The Ministry urged businesses conducting such transactions to file and pay business tax as required. Businesses that have underreported or failed to report tax may avoid penalties under Article 48-1 of the Tax Collection Act if they voluntarily file supplementary returns and pay the tax shortfall and applicable interest before being reported or investigated by the tax authority or designated personnel.
