Do You Have to Pay Tax on Crypto Lending Interest? A Simple Guide to Taiwan's Overseas Income Reporting
Do you need to pay tax on crypto lending interest in Taiwan? It's generally treated as overseas income. This article covers reporting thresholds (NT$1 million reporting / NT$6.7 million basic tax exemption), how to track your earnings, and common misconceptions. (Not tax advice — please consult a professional.)
If you're earning interest every day from lending, do you need to pay tax on it? Here's a plain-language look at Taiwan's rules. (Reminder: this article is general information, not tax advice.)
What Type of Income Is Lending Interest?
Crypto earnings are generally treated as "overseas income" in Taiwan, which is included in an individual's Basic Income for the purposes of the Alternative Minimum Tax (AMT) system.
Taiwan's Overseas Income Reporting Threshold
Conceptually:
- If your total overseas income for the year is under NT$1 million, it typically doesn't need to be reported
- Once that threshold is reached, it must be included in your Basic Income calculation
- The Basic Income calculation has a relatively high exemption (around the NT$6.7 million level), meaning most small-scale investors won't actually be taxed on it in practice
Actual thresholds and brackets are subject to the Ministry of Finance's rules for the given tax year.
How Do You Track Your Lending Earnings?
It's a good idea to use a spreadsheet to regularly record your daily/monthly interest earnings and their equivalent value in NT dollars, so you have a clear record when it's time for year-end reconciliation. The earnings reports provided by the platform can serve as a helpful supplementary record.
Common Misconceptions
One common misconception is thinking "if I haven't withdrawn it, I don't need to worry about it" — but when income is recognized isn't necessarily tied to the withdrawal date. Another is assuming "crypto earnings are always tax-free" — once you exceed the threshold, reporting is still required. The details vary from person to person.
Reminder: This Is Not Tax Advice
Everyone's income situation is different. Please refer to the Ministry of Finance's official rules, and consult an accountant or tax professional if you're approaching the threshold.
Let your assets start earning interest first — taxes can be handled according to the rules afterward. Try Kindo free for 14 days. → Try it free for 14 days
Disclaimer: This article is for informational purposes only and does not constitute investment, financial, or tax advice, nor is it a solicitation. Cryptocurrency and lending involve risk; returns fluctuate and are not guaranteed, and you may lose your principal. Lending rates are determined by market supply and demand, and past performance does not indicate future results. Please assess your own risk tolerance; for tax matters, please consult a professional.
