Facebook co-founder Eduardo Saverin has received a lot of criticismfor his decision to give up his U.S. citizenship and emigrate toSingapore immediately before Facebook’s ( FB ) IPO. But it’s not a bad business move. Under current law, those who renounce their citizenship have to payU.S. Ultrasonic Cavitation Slimming Machine
tax on their gains as if they had sold all their assets –with up to about $650,000 in gains exempt from tax. That will leadto a huge tax bill for Saverin, but once it’s paid, any futureprice appreciation — if there is any — will go untouched by theIRS. And because Saverin is moving to Singapore — where capitalgains aren’t subject to tax — he won’t have a tax bill at all from now on. Leaving aside whether that is a travesty of tax justice or aperfectly valid way to take advantage of the tax system, should youconsider becoming an expatriate? If the rich are running, is itworthwhile for the rest of us to consider following suit? A Tax-Dodging Trend Interest in giving up U.S. China Multifunction Beauty Equipment
citizenship is nothing new. In thefourth quarter of 2009, more than 500 people gave up theircitizenship — more than double the number who did so in all of2008. By last year, that number had jumped to almost 1,800. Taxes can be an important element of the decision, but there areothers. China Anti Aging Machines
Recent regulations require citizens to report foreign bankaccounts with more than $10,000 on deposit. For the millions ofAmericans who live and work abroad, it can be difficult to complywith such restrictions. In particular, with the U.S. now expectingforeign financial institutions to meet reporting requirements oftheir own, those institutions are less willing than ever to openaccounts for Americans subject to those requirements.
Moreover, those who live abroad may reasonably believe that theyget little benefit from the U.S. taxes they have to pay. Althoughforeign residents get a $100,000 exemption on income from U.S. tax,they have to pay tax on the excess — even if they have no otherconnection to the U.S. other than citizenship.