Overseas Income and Taiwan's Alternative Minimum Tax: How to Report U.S. Stocks, Crypto and Hong Kong Interest (NT$1 Million Threshold, NT$7.5 Million Deduction, Foreign Tax Credit)

Overseas income is income that a Taiwan tax resident receives from outside Taiwan, including Hong Kong and Macao. It is not added to regular individual income tax; it falls under the Alternative Minimum Tax instead: once a filing household’s total overseas income for the year reaches NT$1 million, all of it is added to basic income. The part of basic income above NT$7.5 million is taxed at 20%, and the resulting basic tax is then compared with regular income tax. You pay the difference only when the basic tax is higher.

The short answer: U.S. stock dividends, gains from selling U.S. stocks or ETFs, and interest from Hong Kong banks are all overseas income, counted in the year of the payment date or settlement date; unrealized paper gains don’t count. If your overseas income is under NT$1 million, or your basic income stays at or below NT$7.5 million after adding it, you pay no basic tax. The households that end up paying more are those with large overseas income and relatively low regular income tax. Dividend tax withheld by the U.S. can be credited, but the credit is capped and requires an authenticated tax payment certificate. The Ministry of Finance has not given a clear way to classify crypto gains made on foreign exchanges.

This article is based on public information from the Laws & Regulations Database of the ROC, the Ministry of Finance’s eTax portal and the National Taxation Bureaus, consulted on 17 October 2026. It only explains the rules and does not constitute tax or investment advice; all figures are hypothetical and do not represent your tax. Every household’s income mix is different. If you have large overseas income, crypto, or tax paid in several countries to credit, consult the National Taxation Bureau or an accountant.

What counts as overseas income

Article 12 of the Income Basic Tax Act (所得基本稅額條例), paragraph 1, subparagraph 1, covers “income from sources outside the Republic of China that is not included in gross consolidated income, and income exempt from income tax under Article 28, paragraph 1 of the Act Governing Relations with Hong Kong and Macao.” The Ministry of Finance’s eTax portal describes it as “income from sources outside the Republic of China and income from Hong Kong and Macao,” which is what people usually call overseas income.

Points 2 and 4 of the Ministry of Finance’s rules on reporting and auditing overseas income (full name: 非中華民國來源所得及香港澳門來源所得計入個人基本所得額申報及查核要點, last amended 2 July 2021) explain:

• Income from mainland China is excluded: it is handled separately under the Act Governing Relations between the People of the Taiwan Area and the Mainland Area, and is not part of overseas income.
• The categories are the same as for domestic income: business profits, professional practice, salaries, interest, rental and royalties, property transactions, competition and lottery winnings, retirement and other income, all totaled for the year.

The types most relevant to readers of this site:

The Alternative Minimum Tax applies only to Taiwan tax residents. The eTax portal explains that this means individuals who have a domicile in Taiwan and usually live there, or who have no domicile but stay in Taiwan for 183 days or more in a year.

The NT$1 million threshold and the NT$7.5 million deduction

NT$1 million is the household total, and reaching it brings in all of it

The proviso in Article 12 states that if a filing household’s total income of this kind for the year “is less than NT$1 million, it is not included.” Three key points:

• Counted per filing household: the overseas income of the taxpayer, the spouse and the dependents in the same return is added together.
• Under NT$1 million: none of the overseas income is added to basic income.
• NT$1 million or more: all of it is added, not just the part above NT$1 million.

No basic tax at NT$7.5 million or below

The deduction in Article 13 was originally NT$6 million, and Article 3 provides for an adjustment when the consumer price index has risen by a cumulative 10% or more. The eTax portal’s basic tax calculation Q&A states that from tax year 113 (2024):

Basic tax = (basic income − NT$7.5 million) × 20%

Basic income is your net consolidated income plus overseas income (when it reaches the threshold) and other items the Act requires you to add back, such as certain insurance payouts and the deduction for non-cash donations. The eTax portal’s section for foreign residents also explains that when a filing household’s basic income is NT$7.5 million or less, it does not need to file the Individual Income Basic Tax Return, even if it has overseas income.

I didn’t find any announcement of a further adjustment to the NT$7.5 million for tax years 114 or 115; under Article 3, an adjustment requires a cumulative price rise of 10%. When you file, go by the Ministry of Finance’s announcement for that year.

Compare with regular income tax and pay the higher one

According to the eTax portal:

• Regular income tax ≥ basic tax: you pay no basic tax.
• Basic tax > regular income tax: you pay “basic tax − regular income tax − creditable foreign tax paid.”

Regular income tax is your consolidated income tax payable, plus the tax on dividends taxed separately, minus investment tax credits. So with the same overseas income, a household with higher regular income tax is less likely to owe more.

How U.S. stocks, ETFs, crypto and Hong Kong interest are each treated

U.S. stock dividends: the U.S. withholds 30% first

Taiwan and the U.S. have no tax treaty in force, so the U.S. first withholds 30% on ordinary dividends from U.S. stocks and U.S. ETFs; for details, see U.S. dividend withholding tax of 30%. On the Taiwan side, distributions count as overseas income in the year of the payment date.

Whether the 30% withheld can be credited, and how much, depends on the foreign tax credit covered in the next section. For how VT and VOO differ in dividend tax, see VT vs VOO.

Gains from selling U.S. stocks and ETFs: overseas property transaction income

Point 11 of the rules defines property transaction income as “the balance of the transaction price after deducting the original acquisition cost and all expenses paid for acquiring, improving and transferring the asset.” That is how a gain on U.S. stocks is calculated: the sale amount minus the purchase cost and fees.

A few things to watch:

• The U.S. generally doesn’t tax it: under IRS Publication 519, capital gains that nonresident aliens make on U.S. stocks are generally subject to U.S. tax only if they spent 183 days or more in the U.S. that year, so there is usually no U.S. tax on this part to credit in Taiwan.
• The suspension of tax on domestic listed stocks doesn’t apply: the eTax portal explains that overseas securities transaction income is not within the exemption.
• No proof of cost: under point 16 of the rules, the income on securities can be calculated as 20% of the actual sale price. If your actual gain was less than 20%, failing to keep cost records means your income will be overstated.
• Losses: overseas property transaction losses can be deducted from overseas property transaction income in the same year, up to the amount of that income; they cannot be deducted from other kinds of income or carried forward to later years.

Accumulating Irish ETFs: realized only when sold

Accumulating ETFs don’t distribute; their income stays in the NAV, so while you hold them there is no payment and therefore no overseas income for that year. When you sell, the sale amount minus your cost (including the income accumulated over the years) counts as overseas property transaction income all at once. Realization is deferred, but it is not tax-free; IB01 vs SGOV compares this.

Point 3 of the rules uses the settlement date for stocks and, for fund beneficiary certificates, the date the agreed redemption price is calculated. I didn’t find a clear statement from the Ministry of Finance on which one applies to Irish ETFs traded on an exchange. If you sell around the end of the year, ask the National Taxation Bureau first.

Crypto: this is as far as the Ministry of Finance goes

The press release issued by the Ministry of Finance’s Taxation Administration on 18 November 2022, in response to FTX filing for bankruptcy protection, is the most direct statement I found from the Ministry on individuals trading virtual assets:

• Individual income tax follows the territorial principle and taxes only income arising within Taiwan.
• An individual’s “income from occasional trading of virtual assets within Taiwan” is property transaction income, calculated as the sale price minus the acquisition cost and related expenses, and included in gross consolidated income.
• For an individual’s “income arising overseas,” if the filing household’s total overseas income for the year reaches NT$1 million, it is added to basic income under the Income Basic Tax Act; overseas property transaction losses, with supporting documents, are deducted from overseas property transaction income in the same year.
• Investors are reminded to keep documents proving the acquisition cost of their virtual assets.

The press release does not explain how to decide whether income from trading on a foreign exchange arises within Taiwan or overseas, nor does it say whether the exchange’s place of registration or server location is the test. So “what you earn on a foreign exchange is overseas income” is only a common view, not an explicit conclusion from the Ministry of Finance. This article doesn’t run numbers for this part; if the amounts are large, ask the National Taxation Bureau or an accountant first.

Whichever category it falls into, you need cost records to calculate the income. For how to export each exchange’s reports and how long to keep them, see How to export and keep your crypto transaction history.

Hong Kong bank interest: untaxed in Hong Kong, overseas income in Taiwan

According to the Hong Kong Inland Revenue Department’s brief guide to its taxes, interest that individuals earn on deposits with authorized institutions in Hong Kong is not taxed; the eTax portal, for its part, explicitly lists income from Hong Kong and Macao as overseas income. So Hong Kong interest must be counted as overseas income in Taiwan, but there is no Hong Kong tax to credit. For details on opening an account, see Opening a Hong Kong bank account as a Taiwanese.

When it counts and how to convert to NT dollars

Points 3 and 17 of the rules:

What this means in practice:

• Paper gains on stocks you haven’t sold don’t count: overseas income is counted by payment date, and a rise in value while you hold has no payment.
• For year-end sales, check the settlement date: if you sell in the last few trading days of December, settlement may fall in the following year.
• Whether the money comes back to Taiwan makes no difference: the year depends on the payment or settlement date, not on where the money is.

Foreign tax credit: the cap and the documents

Article 13 of the Act provides that income tax already paid on overseas income under the tax law of the source country can be credited, but “the credit may not exceed the increase in basic tax calculated under the preceding provision as a result of including that income.”

According to the eTax portal, the creditable amount is the lower of:

1. The tax actually paid abroad, as shown on a tax payment certificate for the same year issued by the source country’s tax authority.
2. The credit cap: (basic tax − consolidated income tax payable − tax payable on separately taxed dividends) × [overseas income ÷ (basic income − net consolidated income − separately taxed dividends)].

On documents, point 18 of the rules requires a tax payment certificate for the same year issued by the source country’s tax authority, authenticated by the local ROC embassy, consulate or a government-authorized institution.

Withholding on U.S. dividends is generally done by the broker acting as withholding agent, which issues Form 1042-S after the year ends. That form comes from the broker, not from the U.S. tax authority; I didn’t find a clear statement from the Ministry of Finance on whether it can serve directly as the tax payment certificate the rules require, or how to authenticate it. If you actually need the credit, ask the National Taxation Bureau or an accountant first.

Also, in a year with no basic tax to pay, the tax the U.S. withheld has nothing to be credited against in Taiwan, and it is not refunded.

Hypothetical examples: two households

All figures below are hypothetical, with exchange rates simplified to US$1 = NT$32 and HK$1 = NT$4.1; an actual return must use the rate on each payment date. In both households, overseas income is the only item to add back, and there are no separately taxed dividends.

Household A: US$5,000 in U.S. stock dividends (US$1,500 withheld by the U.S.), a US$30,000 gain from selling a U.S. ETF and HK$20,000 in Hong Kong interest; net consolidated income of NT$3 million.

Household A’s overseas income crosses the threshold, but its basic income doesn’t exceed NT$7.5 million, so it pays no basic tax and doesn’t need to file the basic tax return.

Household B: the same dividends and Hong Kong interest, and a US$250,000 gain from selling a U.S. ETF; net consolidated income of NT$1 million, with regular income tax assumed to be NT$80,000.

What sets Household B apart is the large gain on the sale: realizing US$250,000 at once pushes basic income above NT$7.5 million. The gain wasn’t taxed in the U.S., so the only creditable part is the tax withheld from the dividends.

Records to keep

Point 19 of the rules requires that overseas income be reported with payment records, contracts or other documents proving the amount of income; documents in a foreign language must come with a Chinese translation, except English documents the tax authority has accepted. You can start preparing:

• Broker annual reports and statements: the purchase cost, sale amount, fees, settlement date and distribution date of every trade.
• Dividend withholding records: the broker’s Form 1042-S or annual tax report.
• Bank interest statements: interest credit records or annual statements from your Hong Kong bank.
• Crypto transaction records: trade and deposit/withdrawal reports exported from exchanges, and on-chain TxIDs; for how, see How to export and keep your crypto transaction history.
• Exchange rate basis: Bank of Taiwan’s spot rates on each payment date.

Article 15 of the Act provides that underreporting or omitting basic income is subject to a fine of up to twice the tax evaded, and failing to file when required is subject to a fine of up to three times the tax assessed.

FAQ

Is the NT$1 million overseas income threshold per person or per household?

Per filing household. Article 12 of the Income Basic Tax Act refers to a filing household's total overseas income for the year, which counts the taxpayer together with the spouse and dependents included in the same return. Below NT$1 million, none of it is added to basic income; once it reaches NT$1 million, all of it is.

If my overseas income is over NT$1 million, do I have to pay tax?

Not necessarily. After all of your overseas income is added, there is no basic tax if your basic income is NT$7.5 million or less. Above that, the basic tax is 20% of the amount over NT$7.5 million, which is then compared with your regular income tax; if the regular income tax is higher, you pay no additional basic tax.

Can the 30% the U.S. withholds from my dividends be credited in Taiwan?

Article 13 of the Income Basic Tax Act allows income tax already paid at the source on overseas income to be credited against the basic tax, but the credit is capped, and you must attach a tax payment certificate for the same year issued by the source country's tax authority and authenticated by an ROC overseas mission. In a year with no basic tax to pay, there is nothing to credit it against.

Which year does a gain from selling U.S. stocks count toward?

Under the Ministry of Finance's rules on reporting and auditing overseas income, gains from stock trades count toward the year of the settlement date, and dividends, interest and similar income count toward the year of the payment date. Foreign currency amounts are converted to NT dollars at the average of Bank of Taiwan's spot buying and selling closing rates on the payment date.

Do crypto gains from trading on a foreign exchange count as overseas income?

A Ministry of Finance press release of 18 November 2022 explains that an individual's income from occasional trading of virtual assets within Taiwan is property transaction income, while income arising overseas falls under the Alternative Minimum Tax. But the press release does not explain how to decide whether trades on a foreign exchange happen in Taiwan or overseas; ask the National Taxation Bureau or an accountant about your case.

How is the income from selling stocks overseas calculated if I have no cost records?

Under the Ministry of Finance's rules on reporting and auditing overseas income, if you cannot document your cost, the income on securities can be calculated as 20% of the actual sale price. So keep your purchase trade records and statements.