TIKTOK parent bytedance is asking Chinese staff at its Singapore headquarters to pay tax to their home country or risk losing their ability to cash out on stock options, reports London's Financial Times.
Employees at ByteDance who relocated from China to Singapore received an internal memo requiring them to report their income to Chinese tax authorities and pay relevant taxes to cash out on stock options that make up a significant portion of their pay, according to three people with knowledge of the matter.
Those hired locally with Chinese citizenship were encouraged to report their income but not required to do so, according to the people. More than 1,000 employees could be affected, and the tax difference could be as high as 21 percentage points depending on individual salaries, as both countries have a tiered tax structure.
Singapore has emerged as a regional hub for many Chinese companies looking to expand into south-east Asia and globally. Tech giants Alibaba, Tencent and PDD, as well as start-ups such as Shein, have set up offices in the city-state, where lower tax rates have convinced many Chinese workers to relocate.
SeaNews Turkey
Employees at ByteDance who relocated from China to Singapore received an internal memo requiring them to report their income to Chinese tax authorities and pay relevant taxes to cash out on stock options that make up a significant portion of their pay, according to three people with knowledge of the matter.
Those hired locally with Chinese citizenship were encouraged to report their income but not required to do so, according to the people. More than 1,000 employees could be affected, and the tax difference could be as high as 21 percentage points depending on individual salaries, as both countries have a tiered tax structure.
Singapore has emerged as a regional hub for many Chinese companies looking to expand into south-east Asia and globally. Tech giants Alibaba, Tencent and PDD, as well as start-ups such as Shein, have set up offices in the city-state, where lower tax rates have convinced many Chinese workers to relocate.
SeaNews Turkey
