Standardised global tax for the super-wealthy mooted

Rumblings about a global minimum tax on ultra-wealthy individuals are getting louder, with a recent proposal from Brazil to introduce an international standard to tax billionaires.

- Amanda Visser

This follows on the heels of a call for a minimum global tax of 2% on untaxed global wealth, which it is estimated would generate tax revenue north of $250 billion (more than R4.4 trillion) per annum if introduced.

The International Fiscal Association (IFA) looked at the latest tax developments around high-net-worth individuals during its first congress on African soil.

Rising inequality and the moral imperative behind these discussions formed part of the congress discussions.

The Brazilian proposal of an international standard follows the same principle as the current move in corporate tax to have a minimum global tax of 15% on large multinational companies, the so-called Pillar Two initiative.

The proposal comes from French economist Gabriel Zucman, who was commissioned by the Brazilian government, and was presented by Brazil during the G20 meeting in July.