Facebook co-founder Eduardo Saverin may avoid $67 million on U.S. tax bill - NY Daily News
For Facebook’s co-founder, being unfriendly will really pay off.
Eduardo Saverin, 30, may avoid at least $67 million on his U.S. tax bill by renouncing his American citizenship ahead of Facebook’s massive multibillion-dollar IPO this week, Bloomberg reported.
Saverin will become a citizen of Singapore, where he has lived for the past three years.
The savings were calculated based on the 15% capital-gains tax Saverin would owe on his holdings as a U.S. citizen, as well as the increased price of Facebook’s initial public offering.
Singapore does not have a capital-gains tax.
Facebook’s IPO, already the largest ever for an Internet company, got even bigger this week. The company increased the initial stock price to as high as $38 per share, putting Facebook’s total value at more than $100 billion, more than major companies such as McDonald’s.
The public offering will put an estimated $2.89 billion in Saverin’s pocket, reported Bloomberg.
Saverin was part of a group of Harvard students who helped Mark Zuckerberg launch Facebook in 2004. Born in Brazil, he became a U.S. citizen in 1998.