Elon Musk to pay over R175 billion in tax this year

Elon Musk, the world’s richest person and chief executive officer of Tesla Inc., said on Twitter that he’ll pay more than $11 billion (R175 billion) in taxes this year, an amount that could constitute a record payment to the U.S. Internal Revenue Service.

The billionaire may face a tax bill of more than $10 billion (R159 billion) for 2021 if he exercises all his options due to expire next year, calculations last week by Bloomberg News showed.

The unusually high levy comes after Musk exercised almost 15 million options and sold millions of shares to cover the taxes related to those transactions.

That was following a Twitter poll last month when he asked followers whether he should sell 10% of his stake in the electric carmaker, whose shares have rocketed more than 2,300% over the past five years.

A report by ProPublica in June said Musk paid little income tax relative to his outsize wealth.

For those wondering, I will pay over $11 billion in taxes this year

— Elon Musk (@elonmusk) December 20, 2021

But he’s pushed back against that characterization, saying he doesn’t draw a salary from either SpaceX or Tesla, and pays an effective tax rate of 53% on stock options he exercises.

He added that he expects that tax rate to increase next year.

Musk earlier this month said he’ll pay more taxes than any American in history this year.

That was in response to another tweet from Massachusetts Sen. Elizabeth Warren, who used Musk’s Time Magazine “Person of the Year” accolade to call him out on his taxes.

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