TikTok

TikTok staff face big US tax bills on shares they cannot sell

Current and former employees of video app’s Chinese parent ByteDance in outcry over stock award liabilities

TikTok workers in the US have been saddled with multimillion-dollar tax liabilities on shares they are unable to sell, at a time when the Chinese-owned video-sharing app is battling a potential US ban.ByteDance, the app’s Beijing-based parent, is facing a backlash from US employees over a stock awards programme that blocks them from cashing in their shares while leaving them exposed to a large potential tax bill, according to interviews with more than a dozen current and former workers.

The frustrations pit some of TikTok’s US workers against the company at a sensitive time for its leadership. The US Senate is weighing a bill that would force the sale of the app over national security concerns, or have it banned.

Nnete Matima, who in August left her job as a TikTok sales executive, said she was on the hook for a “potentially substantial” tax bill. “There are people who have a six-figure tax liability on [income] that they have never received,” she said.

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