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Eduardo Saverin  (Source: trbimg.com)
Bloomberg reached this number by adding the 15 percent U.S. capital gains rate to the $448 million difference between September's $2.44 billion and today's $2.89 billion

Facebook co-founder Eduardo Saverin could see about $67 million in savings on federal income taxes after eliminating his U.S. citizenship.

Saverin, who was part of Facebook's Harvard-born beginnings, owns about 4 percent of the company. He dropped his American citizenship around September 2011, and now lives in Singapore.

Facebook, which is launching its $104 billion initial public offering (IPO) this week and will be trading under the ticker "FB," plans to sell shares for as high as $38 apiece this week.

In September 2011, Saverin's stake was worth about $2.44 billion. Now, based on Facebook's 1.898 billion shares total, his stake may be worth around $2.89 billion.

According to Bloomberg, Saverin could save $67 million in federal income taxes by letting go of his U.S. citizenship. Bloomberg reached this number by adding the 15 percent U.S. capital gains rate to the $448 million difference between September's $2.44 billion and today's $2.89 billion.

Saverin will now be able to receive a profit from future appreciation of his Facebook stock without worrying about capital gains tax because he let go of his U.S. citizenship, and the fact that Singapore does not have the tax.

In addition, as Facebook's shares increase, Saverin's savings will also continue growing.

However, Saverin will have to pay an exit tax on the estimated capital gains from his stock holdings at the time that he renounced his U.S. citizenship. This means the Saverin will have to pay $365 million.

Last month, The New York Times accused Apple of dodging billions in taxes worldwide. Last year, the tech giant paid about $3.3 billion in taxes around the globe on its profits of $34.2 billion at a tax rate of 9.8 percent.

Apple got out of paying more on taxes through a few different methods, including putting an office in Reno, which allows Apple to escape California's 8.84 percent tax rate for Nevada's 0 percent; selling digital content, which can be sold from low-tax countries anywhere around the world, and the "Double Irish With a Dutch Sandwich," which allows Apple to cut taxes by directing profits through low-cost Irish subsidiaries, the Netherlands and the Caribbean.

Source: Bloomberg





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