source : http://finance.yahoo.com/news/facebook-co-founder-saverin-gives-up-u-s--citizenship-before-ipo.html

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.

[Related: Facebook Eyes Higher Price Range: Sources]

“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.

Saverin’s name is on a list of people who chose to renounce citizenship as of April 30, published by the Internal Revenue Service. Saverin renounced his U.S. citizenship “around September” of last year, according to his spokesman.

Singapore doesn’t have a capital gains tax. It does tax income earned in that nation, as well as “certain foreign- sourced income,” according to a government website on tax policies there.

Exit Tax

Saverin won’t escape all U.S. taxes. Americans who give up their citizenship owe what is effectively an exit tax on the capital gains from their stock holdings, even if they don’t sell the shares, said Reuven S. Avi-Yonah, director of the international tax program at the University of Michigan’s law school. For tax purposes, the IRS treats the stock as if it has been sold.

Renouncing your citizenship well in advance of an IPO is “a very smart idea,” from a tax standpoint, said Avi-Yonah. “Once it’s public you can’t fool around with the value.”

Saverin previously scuffled with Zuckerberg, his Harvard University classmate, over his ownership in Facebook. Saverin sued him and settled for an undisclosed amount.

The 2010 movie “The Social Network” added to Saverin’s fame after it portrayed him as a scorned friend who provided the company’s early financing and then was squeezed out. In the film, written by Aaron Sorkin, Saverin was portrayed by Andrew Garfield, who will play Spider-Man in “The Amazing Spider- Man.”

Saverin’s Investments

Saverin moved to the U.S. in 1992, and became a citizen in 1998, his spokesman said. He has invested in Asian, U.S. and European companies, according to his spokesman.

He plans to invest in Brazilian and in other global companies that have strong interests in entering the Asian markets. “Accordingly, it made the most sense for him to use Singapore as a home base,” Goodman said in the statement.

His U.S. holdings include Jumio Inc., an online payments company, and ShopSavvy Inc., a price-comparison service.

Renouncing citizenship is an option chosen by increasing numbers of Americans. A record 1,780 gave up their U.S. passports last year compared with 235 in 2008, according to government records.

read more : http://finance.yahoo.com/news/facebook-co-founder-saverin-gives-up-u-s--citizenship-before-ipo.html

Heh.

Kind of ruthless...shows a lot of ingratitude for the opportunities the US has provided him.

But makes sense financially.

ekt_bear: Heh.

Kind of ruthless...shows a lot of ingratitude for the opportunities the US has provided him.

But makes sense financially.

@ bold, That's the point bro, American T.A.X system is a Ripoff...

why do you say that

our taxes are much lower than European or Canadian taxes, for example

With that said...if I were as rich as him and stood to lose as much money in taxes as him...perhaps I too would renounce my citizenship.

But if you are worth several billion dollars, does a few 100 mil one way or another matter? I dunno...not an easy question for me.

Can a 2012 Nigerian do this? Never. Maybe the 70s and 80s Nigerians would have towed this path but not 2012 Nigerians.

Give up American citizenship?

I'm sure many would, if keeping it would cost them 100+ million.

Rationally the best thing to do is to give up your citizenship if it costs that much.

I don't think the value of US citizenship can be more than $10 million for most people.

And even that is probably a dramatic overestimate..

Basically if you are a very rich man, you don't need the benefits, structure, and safety net that the US provides.

It is only for ordinary, regular folk for whom those benefits are really vital.

ekt_bear: why do you say that

our taxes are much lower than European or Canadian taxes, for example

Are you sure about that sir ? the last time I checked Your Government taxed her citizen up to 35% on thier income... That is not fair on my side...

Yes. US taxes are lower than Canadian or European taxes.

You can look it up to confirm for yourself, if you like

life_style:

Are you sure about that sir ? the last time I checked Your Government taxed her citizen up to 35% on thier income... That is not fair on my side...

I heard that of the UK and other european countries are the most brutal when it comes to taxation. How can one give up to 35% of their income to a country. That's a rip off.

@ those who live in the US
Do people who engage in self employment in the US pay tax?

ekt_bear: Yes. US taxes are lower than Canadian or European taxes.

You can look it up to confirm for yourself, if you like

What percentage do you pay for tax ?

life_style: source : http://finance.yahoo.com/news/facebook-co-founder-saverin-gives-up-u-s--citizenship-before-ipo.html

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.

[Related: Facebook Eyes Higher Price Range: Sources]

“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.

Saverin’s name is on a list of people who chose to renounce citizenship as of April 30, published by the Internal Revenue Service. Saverin renounced his U.S. citizenship “around September” of last year, according to his spokesman.

Singapore doesn’t have a capital gains tax. It does tax income earned in that nation, as well as “certain foreign- sourced income,” according to a government website on tax policies there.

Exit Tax

Saverin won’t escape all U.S. taxes. Americans who give up their citizenship owe what is effectively an exit tax on the capital gains from their stock holdings, even if they don’t sell the shares, said Reuven S. Avi-Yonah, director of the international tax program at the University of Michigan’s law school. For tax purposes, the IRS treats the stock as if it has been sold.

Renouncing your citizenship well in advance of an IPO is “a very smart idea,” from a tax standpoint, said Avi-Yonah. “Once it’s public you can’t fool around with the value.”

Saverin previously scuffled with Zuckerberg, his Harvard University classmate, over his ownership in Facebook. Saverin sued him and settled for an undisclosed amount.

The 2010 movie “The Social Network” added to Saverin’s fame after it portrayed him as a scorned friend who provided the company’s early financing and then was squeezed out. In the film, written by Aaron Sorkin, Saverin was portrayed by Andrew Garfield, who will play Spider-Man in “The Amazing Spider- Man.”

Saverin’s Investments

Saverin moved to the U.S. in 1992, and became a citizen in 1998, his spokesman said. He has invested in Asian, U.S. and European companies, according to his spokesman.

He plans to invest in Brazilian and in other global companies that have strong interests in entering the Asian markets. “Accordingly, it made the most sense for him to use Singapore as a home base,” Goodman said in the statement.

His U.S. holdings include Jumio Inc., an online payments company, and ShopSavvy Inc., a price-comparison service.

Renouncing citizenship is an option chosen by increasing numbers of Americans. A record 1,780 gave up their U.S. passports last year compared with 235 in 2008, according to government records.

read more : http://finance.yahoo.com/news/facebook-co-founder-saverin-gives-up-u-s--citizenship-before-ipo.html

@bolded
America the mystery babylon prophecised in the books of Daniel and Revelation is gradually falling. See her citizens denouncing her. I am not suprised. God warned them that the day they turn their backs at Him by living sinfully will be the begining of their downfall and the end to their greatness. Before anyone begins to insult their mother and father not me, please read the bible because what I am saying is in there. I know of alot of ELDERLY americans who are looking to retire outside the United states because their retirement packages such as social security and the likes are not enough to live comfortably on in their home country.

South America is the preferred destination and many of them are buying up properties in South America so that they can retire there comfortably without breaking the bank. Few months ago, some white american guy in his 30s was bragging that he has secured a job in Canada and wished his fellow americans still stuck in the U.S good luck. America is too proud and pride comes before a fall they say. Be humble and you will be exalted by the Lord God. I don't blame Eduardo Severin who wants to go back to Singapore and live there indefinately. Singapore is a beautiful and orderly country so its not like he is going to be living in some jagajaga country with epileptic power supply. If I was from Singapore, I will NEVER migrate to the USA. What for?

dasparrow:

@bolded
America the mystery babylon prophecised in the books of Daniel and Revelation is gradually falling. See her citizens denouncing her. I am not suprised. God warned them that the day they turn their backs at Him by living sinfully will be the begining of their downfall and the end to their greatness. Before anyone begins to insult their mother and father not me, please read the bible because what I am saying is in there. I know of alot of ELDERLY americans who are looking to retire outside the United states because their retirement packages such as social security and the likes are not enough to live comfortably on in their home country.

South America is the preferred destination and many of them are buying up properties in South America so that they can retire there comfortably without breaking the bank. Few months ago, some white american guy in his 30s was bragging that he has secured a job in Canada and wished his fellow americans still stuck in the U.S good luck. America is too proud and pride comes before a fall they say. Be humble and you will be exalted by the Lord God. I don't blame Eduardo Severin who wants to go back to Singapore and live there indefinately. Singapore is a beautiful and orderly country so its not like he is going to be living in some jagajaga country with epileptic power supply. If I was from Singapore, I will NEVER migrate to the USA. What for?

You're right. Very soon America will become part of the old while south-america and Asia will become part of the new destinations. I hope Africa joins the fray but the way things are going the only fray we can join is the fray of terrorism, corruption and armed robbery. Tufiakwa.

Uncle Sam is a thief. If you are a citizen and you make money in another country, Uncle Sam still wants a piece of it.

afam4eva:
I heard that of the UK and other european countries are the most brutal when it comes to taxation. How can one give up to 35% of their income to a country. That's a rip off.

@ those who live in the US
Do people who engage in self employment in the US pay tax?

Of course self-employed people do pay taxes. But I don't believe it is anything close to 35%. I believe the percentage is still at about 20-28% depending on your tax bracket.

The man is a fool. Just because of tax? I would NEVER drop my American citizenship. It is even when you are richer that you need it more.
I am spiritually committed to the US, and when we get Biafra, I will make sure that Biafra is also spiritually committed to the US.

Onlytruth: The man is a fool. Just because of tax? I would NEVER drop my American citizenship. It is even when you are richer that you need it more.
I am spiritually committed to the US, and when we get Biafra, I will make sure that Biafra is also spiritually committed to the US.

Biafra spiritually connected to Yankee?! Mehn, this onlytruth guy is adorable i swear. very funny guy. just when you thot you've heard it all!

Onlytruth: The man is a fool. Just because of tax? I would NEVER drop my American citizenship. It is even when you are richer that you need it more.
I am spiritually committed to the US, and when we get Biafra, I will make sure that Biafra is also spiritually committed to the US.

Ok, Eduardo is a fool and u're very smart (obviously) but please explain what u mean by needing US citizenship when u live in Singapore (Billionaires city) and u're a native of 2nd fastest growing economy in the world, especially when u're richer?

Hmmm, I don't think that was a smart move but being that his tax rate is probably in the mid 30(s)%, and then you have to consider "double taxation", I can see why he bailed out.

lagcity: Uncle Sam is a thief. If you are a citizen and you make money in another country, Uncle Sam still wants a piece of it.

True. Uncle is a real big (go figure). I won't call them thief, but, that's a real ripoff. You make money in the U.S., you pay tax, outside the U.S., you pay taxes, both Federal and State. You have assets outside the U.S., you pay taxes, pretty much everything you do is paying taxes. The reason for all this taxes is simply because America is in a $14trillion sh/it hole. IRS and Congress will do ANYTHING and EVERYTHING to get that little penny out of you...smh

life_style:

Are you sure about that sir ? the last time I checked Your Government taxed her citizen up to 35% on thier income... That is not fair on my side...

And our Government (UK) tax us 40%. . .

[quote author=afam4eva]
I heard that of the UK and other european countries are the most brutal when it comes to taxation. How can one give up to 35% of their income to a country. That's a rip off.

I WONDER WHO WILL PAY FOR SECURITY FREEDOM AS WELL AS TOP CLASS HEALTH EDUCATION AND INFRASTRUCTURE.CANT EAT UR CAKE AND HAVE IT

Ibime:


And our Government (UK) tax us 40%. . .

That is too much...

[quote author=mikolo80][/quote]

Indeed. People want the very best things in life...for free