Chinese staff at TikTok’s parent company in Singapore required to comply with China’s tax regulations
ByteDance, the parent company of TikTok, has instructed its Chinese employees based in Singapore to report their income and pay taxes to Chinese authorities. Failure to comply could impact their ability to cash out stock options, which make up a significant portion of their salaries. This move is part of China’s broader effort to enforce tax collection from expatriates worldwide as the country seeks to bolster its revenue amid an economic slowdown.
China has been tightening its tax regulations on overseas citizens, mirroring the U.S. global taxation model. Under a 2019 tax revision, Chinese expatriates are required to report and pay taxes on their foreign income. While enforcement has been inconsistent, ByteDance’s directive signals Beijing’s growing determination to ensure compliance. The policy is expected to affect more than 1,000 employees at the company’s Singapore headquarters, where many Chinese workers have relocated due to lower tax rates and business opportunities.
ByteDance’s Internal Directive
Employees who relocated from China to Singapore have been explicitly required to report their income to Chinese tax authorities to cash out their stock options. Chinese citizens hired locally in Singapore, however, have only been encouraged to follow the same reporting guidelines. The highest marginal tax rate in mainland China is 45%, significantly higher than Singapore’s 24% and Hong Kong’s 15%, making the tax difference as high as 21 percentage points depending on individual salaries.
Tax Implications for Employees
With stock options forming a key part of ByteDance’s compensation structure, affected employees could face substantial financial implications. Many employees receive restricted stock units (RSUs), which vest over several years and can later be purchased by the company. In a recent share buyback in November, ByteDance was valued at USD 300 billion (SGD 405 billion). Employees required to pay taxes must now provide proof of payment to participate fully in future buybacks. Any unpaid tax liabilities will be deducted from their RSUs.
As China faces economic challenges, authorities have intensified tax collection efforts, demanding that wealthy individuals and corporations review and settle any outstanding liabilities. The enforcement of these rules for ByteDance employees reflects Beijing’s growing scrutiny over expatriates’ financial obligations. However, there are still no clear penalties for those who fail to comply, leaving many uncertain about the long-term impact.
In response to concerns, ByteDance has pledged to provide subsidies to affected employees for up to two years. However, it remains unclear whether the subsidies will be enough to offset the full tax gap. Employees facing additional financial strain may need to reassess their long-term plans in Singapore.
This development raises concerns about its appeal as a regional headquarters for Chinese firms. If similar tax policies are enforced on other Chinese companies operating in Singapore, it could lead to talent outflows or increased financial burdens on employees. International businesses may also need to reconsider their compensation structures for Chinese expatriates to avoid unexpected
Sources: Financial Times, MSN (2025)
Keywords: ByteDance Tax Order, Chinese Employees Singapore, Pay Taxes to Beijing
