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? This article covers the thresholds for including overseas income in Basic Income (NT$1 million and the NT$7.5 million deduction, with the tax years they apply to), how to track your earnings, and common misconceptions. (Not tax advice — please consult a professional.)
Taiwan's Ministry of Finance has not published an explicit rule on what type of income crypto lending interest is. If it counts as overseas income: when a household's total overseas income for the year is under NT$1 million, it is not included in Basic Income; once it reaches that amount, all of it is included, and then the NT$7.5 million deduction applies (tax years 2024–2026). If you're unsure, check with the National Taxation Bureau. What follows is general information, not tax advice.
What Type of Income Is Lending Interest?
The written report on crypto income tax that the Ministry of Finance sent to the Legislative Yuan in January 2025 only covers buying and selling: income from an individual's non-recurring trades of non-securities virtual currency is property transaction income and is included in consolidated income. The report doesn't say what type of income lending interest is, or whether it counts as overseas income.
If lending interest counts as overseas income (income not included in consolidated income that comes from outside the Republic of China, plus income from Hong Kong and Macau), the Alternative Minimum Tax (AMT) thresholds below apply. For how your own situation is treated, check with the National Taxation Bureau.
Taiwan's Overseas Income Reporting Threshold
If lending interest counts as overseas income, the rules are:
- If a household's (you, your spouse, and dependents combined) total overseas income for the year is under NT$1 million, it is not included in Basic Income (Income Basic Tax Act, Article 12)
- Once it reaches NT$1 million, the full amount is included in Basic Income — not just the part above NT$1 million
- The household's Basic Income (net consolidated income plus overseas income and other items) is reduced by a NT$7.5 million deduction, and the remainder is taxed at 20% to get the basic tax; you only pay the difference if the basic tax is higher than your regular income tax (Income Basic Tax Act, Article 13)
The NT$1 million threshold is written into the law itself and applies to tax years 2024–2026. The NT$7.5 million deduction is adjusted for inflation and announced by the Ministry of Finance each year: it is NT$7.5 million for tax years 2024, 2025, and 2026 (ROC years 113–115), per the Ministry of Finance announcement for tax year 2026. Data as of 2026-10-20.
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. Under the rules for reporting and auditing overseas income, you need to attach payment records, contracts, or other documents proving the income amount when you report overseas income. The earnings reports provided by the platform can serve as a helpful supplementary record.
What Are Common Misconceptions About Lending Interest Tax?
One common misconception is thinking "if I haven't withdrawn it, I don't need to worry about it" — but overseas income is counted in the year of the payment date, not when you withdraw or remit it. Another is assuming "crypto earnings are always tax-free" — the Ministry of Finance has said that income from an individual's virtual currency trades is taxable, and even though there's no explicit rule on how lending interest is classified, you may still need to report it. The details vary from person to person.
Who Should You Check With About Lending Interest Tax?
Everyone's income situation is different. Please refer to the Ministry of Finance's official rules. For how lending interest is classified and reported, check with the National Taxation Bureau; if you're approaching the threshold, you can also consult an accountant or tax professional.
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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.
