G20 Evaluates 2% Minimum Tax on Super-Rich Assets

JAKARTA. G-20 member countries are reviewing the implementation of a 2% minimum tax on the wealth of the world's super-rich.

The proposal related to the policy has been submitted at the G-20 countries meeting in Brazil. The consideration is that this policy is considered to be a solution to the problems faced by many countries.

With the current tax system in the world, the super-rich are considered to pay much less tax than most people in the world.

In fact, according to Gabriel Zucman as quoted from the proposal, around 3,000 billionaires in the world pay no tax at all on their income. 

By imposing a wealth tax of 2% per year, they will have the same obligations as most people in the world. 

If the proposal is approved, the G-20 countries will put the agreement into a consensus. The implication is that if a minimum tax of 2% on the wealth of the crazy rich is imposed, there will be an additional US$250 billion in government revenue.

On the other hand, this policy is also considered to minimize the tax rate war between countries that have been going on, by offering the lowest tax rate, even 0% to super-rich individuals.

With a minimum limit, the so-called race to the bottom will be limited. 

This contradicts Indonesia's policy to establish a Family Office. The plan is that the asset management service targeting the world's super-rich individuals will be supported by various facilities, including tax facilities. (ASP/KEN)