Proposal Draft: UBI taxation with Rotki

Humans registered with a Proof of Humanity will have to tax their UBI as income. This can be challenging for unexperienced users and edge cases might arise.

Rotki (https://rotki.com/) is a privacy-first & open-source portfolio tracker, accounting and analytics tool best-suited for this.
It could implement UBI taxation as a feature.

See the related issue on Github:
Add support for the proof of humanity UBI Token. · Issue #2790 · rotki/rotki · GitHub

However, open-source software development costs money.
The proof of humanity DAO could pay Rotki a fair price in UBI for implementing this feature and making the user experience as smooth as possible.

(Note that I am not affiliated with Rotki in any form)

What do you think about the proposal and how would you improve it?
What could be requirements and edge cases that should be considerer to correctly tax the UBI (as well as the actions required for the sign-up process)?
How can this process be made as simple as possible?

Moreover, should users be informed about potential dangers associated with receiving UBI?
Receiving UBI tokens is a taxable event in most legislations.
Accordingly, people have to pay income taxes for the price at which they have received the token even if they sell it for a much lower price afterwards.
This can potentially be a dangerous situation if people don’t know about this.

I’m wondering if it could be considered a gift in US tax law. And so, not taxable to the recipient.

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@michaelheuer.eth totally agree. Is something we need to take care of.
I was thinking that the accounting service could be a premium feature payed in UBI, with which fund the humanitarian yearn vaults.
And also agree with @dogweather. In some countries, as in Mexico, we could leverage the case of UBI as a gift, rather than an income.
Whatsoever, the accounting is needed.
I’ll ping you later on this topic :slight_smile:

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I am not an expert, but I would guess not.

I think a helpful feature would be to automatically detect all actions connected with the submission deposit (self-funding & crowdfunding) and exclude them from taxation.

se me ocurre que una forma barata y rápida de poder hacerlo , es crear un ONG dependiente de PoH y de esta forma triangular la entrega de los UBI , a su vez facilitará la asociación con otras ONG a las cuales se pretenda ayudar .
Va a ser muy necesario en un futuro mediato .
dependiendo en que pais se quiera inscribir , podría dar una mano con ese tema

.It occurs to me that a cheap and fast way to do this is to create an ONG dependent on PoH and in this triangular way the delivery of the UBIs, in turn, it will facilitate the association with other ONG s that they intend to help.
It will be very necessary in the near future.
Depending on which country you want to register in, you could help out with that topic.

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