Facebook Co-Founder Saverin Gives Up U.S. Citizenship Before IPO

[Locutus]

Eduardo Saverin, the billionaire co- founder of Facebook Inc. (FB), renounced his U.S. citizenship before an initial public offering that values the social network at as much as $96 billion, a move that may reduce his tax bill.

Facebook plans to raise as much as $11.8 billion through the IPO, the biggest in history for an Internet company. Saverin’s stake is about 4 percent, according to the website Who Owns Facebook. At the high end of the IPO valuation, that would be worth about $3.84 billion. His holdings aren’t listed in Facebook’s regulatory filings.

Saverin, 30, joins a growing number of people giving up U.S. citizenship, a move that can trim their tax liabilities in that country. The Brazilian-born resident of Singapore is one of several people who helped Mark Zuckerberg start Facebook in a Harvard University dorm and stand to reap billions of dollars after the world’s largest social network holds its IPO.

“Eduardo recently found it more practical to become a resident of Singapore since he plans to live there for an indefinite period of time,” said Tom Goodman, a spokesman for Saverin, in an e-mailed statement.



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Facebook Co-Founder Saverin Gives Up U.S. Citizenship Before IPO - Bloomberg

 

[captain morgan]

This ought to give an idea of why buddy is going to Singapore:

Singapore Taxes, Tax Rates, Income Tax System - 2012 Guide | Singapore Taxation

Current Tax Rates in Singapore

Corporate Tax Rates (for more details, see Singapore Corporate Tax Guide)

IncomeTax RateTax rate on corporate profits for up to 300,000 SGD 8.5%
Tax rate on corporate profits above 300,000 SGD 17%
Tax rate on capital gains accrued by the company 0%
Tax rate on post-tax profits (i.e. dividends) distribution to shareholder 0%
Tax rate on foreign-sourced income not brought into Singapore 0%
Tax rate on foreign-sourced income brought into Singapore0 – 17% subject to conditionsPersonal Tax Rates (for more details, see Singapore Individual Tax Guide)

IncomeTax RateTax rate on first 20,000 0%
Tax rate on next 10,000 2%
Tax rate on next 10,0003.5%Tax rate on next 40,000 7%
Tax rate on next 40,000 11.5%
Tax rate on next 40,000 15%
Tax rate on next 40,000 17%
Tax rate on next 120,000 18%
Tax rate on above 320,000 20%
Tax rate on capital gains 0%
Tax rate on income earned overseas 0%
Tax rate on dividends received from Singapore company 0%

 

[Walter]

He's a bright fellow; gonna save millions.