The new Animal Protection Act will see anyone selling, eating or buying the animals for consumption facing fines of up to £6,500.
Those found guilty of animal cruelty could also receive a huge fine of £52,000 and two years in prison.
Taiwan is the first Asian country to crack down on the practice.
The new law tackles long-standing cultural beliefs about the benefits of eating dogs - for example, eating black dogs in winter is supposed to help you stay warm.