Funds management - taxes

The legal perspective is not only relevant for nash, also for us users its a relevant topic. When we are trading or receiving dividends from staking NEX tokens we have to pay taxes for them. People in one country more than people in other countries. It is by itself a difficult topic and all these different laws doesn’t make this process easy to handle. Not for us users and not even for nash.

Well, when I thought about how I will manage my taxes in the future I would like to do it in the funds management section from nash. I don’t know what they have planed in the future for the funds management, but maybe nash can implement a tool to handle taxes easier.

I’m thinking of something like a tool where people can enter the percentage that has to be paid for tokens generated through staking and a percentage that has to be paid for trading gains.

This tool will calculate based on the users’ history how much taxes have to be paid in a chosen currency. It will also offer an option to convert the calculated amount (for example in USDC) and send it to an extra address. With extra address I mean an address which is not used for trading, but is still accessible from the same private key.

When now the time arrives when I have to pay my taxes I just use this tool once and all the money that need to be paid is at one “tax address”.


By the way, it would be nice to have a category in the forum for funds management :smiley:

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I find it an interesting proposition. Such tool would not only be helpful for NEX, but for other ‘earning’ tokens aswel.

Potential opportunity: While Nash already does legal review for listing tokens, maybe it would be an idea to offer an optional ‘international tax model review service’. These project succesfully undertaken the review could then integrate with the Nash Tax-platform to help their users handle taxes… (in a broader sense it could also be part of some sort of (non custodial) staking and masternode service offered by Nash)

An example prospect in that regard: In DADIs latest report they also talked about taxes and checking for opinions from regulators…

Here is a snippet from that report:

We’ve been engaged with HMRC here in the UK about the VAT treatment of tokens within a decentralised context. We’re working to be able to give clarity in relation to the tax position of network transactions for contributors to the network. Whilst we have a pretty clear view on this front, it is important that we seek confirmation from the relevant authorities on the application of any recent guidance and existing regulatory regimes.
-https://dadi.cloud/en/updates/network/month-in-review-may-2019/

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If you use tax software or an online tax service, like TurboTax, zenledger.io the software or web app will walk you through the process and will ask you if you’ve had any investment income. Answer the questions accurately and the software or web app will automatically place your losses or gains on Schedule D of your electronic return.

i have never used it but you can verify the sites looks legit.

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I think this issue should be the last thing on the team’s bucket list, if at all.
The requirements for taxes vary widely across the globe, so I guess it’s going to be challenging to cater to your specific demands.
I suggest you take full responsibility in the first instance. It’s your life and you shouldn’t expect to be spoon fed all the way!
Cheers

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Or nash could just integrate existing tax calculating systems into nash platform in the future with respective governments who accepts nash… this can also bring a higher response in users using nash in a way.

And yes its the investors responsibilities to file their own taxes and i think this implementation should be done after product has kind of mature, def not now as product is their focus now

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God… how nice would that be.

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@aladd Thanks for the suggestion.

It seems like you haven’t understand what kind of function I’m aiming at. The team should not try to get all the information about what taxes have to be paid in Austria, Germany, USA, Russia, Japan, China, …

I’m pretty sure every of these countries have one thing in common. There will be a percentage that have to be paid of gains though trading and in gains through dividends.

It does not matter if the percentage is 1/5/10/20/50. The tool should just get the information from the user, at which percentage the taxes should be calculated. This will give the users enough variety.

Overall it should be a really easy to program feature.

Well, I don’t think so. This is a really important topic when we talk about funds management. It is one of the main products. Nash is aiming to give the users an advantage in comparison to other solutions.
Also everyone using nash has one thing in common… paying taxes, or aren’t you planning so? :wink:

I don’t think it is up to us to decide if it is on the bucket list prioritized, or not. Even if it should be on the bucket list, or not, is not up to us. It’s the teams decision.

I’m taking full responsibility, but there is nothing wrong in making a suggestion to the team about this topic. Don’t know why you get triggered and drop a sentence like this.

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I imagine that this must be a really busy time for team and perhaps the priority for now should be to let them deliver the the first iteration of the MVP. It’s as simple as that. If the team stops at this stage to adopt every “brilliant idea”, I doubt they’ll ever deliver.
If this tax thingy is already part of the current MVP, then fine. If not, it’s just not worth the hassle.

1 Like