Taoism do not believe in reincarnation of the Buddhism system, but another theory and system based on a more logical way instead. We believe that a human have three souls, seven spirits which are very important and what keeps us alive and living like a human being.
The three souls are : Soul.Celestial, Soul.Physical, Soul.Mental.
The seven spirits are the seven energy fields that are generated from your internals, spreading it's energy field outward from the center of your body. It's like the "aura" that many people have been talking about but a bit different. This acts as the protection shield we all have by nature that helps us bounce away or welcome in any type of energy. It rejects non-alike energ and attracts energies that are alike. So by nature, our energy is positive, and so we attract positive energy and bounce away negatives such as energy from illness, viruses, bacteria, sadness, depressions, etc,. That is why we can stay healthy. If you do any evil practice, your energy field becomes more toward negative and you will attract all these bad things into your life...
In Taoism, we say when you die, your three souls will do the work and you get cycle to another side of planet earth, the Yin.Realm which is another world about the same as this one here - the Yang.Realm. Then you enjoy a life there, and you die again and cycle back to Yang.Realm. Life keep on cycling and it's a very enjoyable process of nature as well. Life cycling is not a suffer and not a pain, it's so enjoyable to be living in nature again and again if you can make use of your life to enjoy your life!