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Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.

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, as Beijing steps up enforcement of its global tax scheme.

Employees at ByteDance who relocated from China to Singapore received an internal memo on Tuesday 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.

China in recent years has increased efforts to collect tax revenue to fill government coffers, including demanding wealthy individuals and companies double-check for unpaid liabilities, amid a broad economic slowdown.

In 2019, Beijing revised its income tax rules to allow authorities to collect revenue from Chinese expats, similar to US rules on Americans living abroad, but it has not enforced them rigorously. Most Chinese citizens working abroad only need to report their taxable income on a voluntary basis, and Beijing has not outlined consequences for those who do not.

For higher-paid workers at ByteDance, the potential difference could be massive. The highest marginal tax rate in mainland China is 45 per cent, while the top rate in Singapore and Hong Kong, cities with significant Chinese expat populations, is 24 per cent and 15 per cent, respectively.

Many ByteDance employees receive part of their remuneration in restricted stock units that are typically vested over a number of years and then purchased by the company. A recent share buyback in November valued ByteDance at $300bn.

A person familiar with the matter said employees required to pay tax would need to show proof of payment to fully participate in the buyback, while any amount of tax owed would be held by the company in equivalent restricted stock units.

The person added that ByteDance would provide subsidies to affected employees for up to two years but did not specify if they would be enough to bridge the gap.

ByteDance did not immediately respond to a request for comment.

Anold Mulaisho was born intersex and wonders where they fit in, in the wake of U.S. President Donald Trump’s executive order for the United States to recognize only two sexes, male and female.

Trump, on his first day in office, ordered an end to a range of policies aimed at promoting racial equity and protecting rights for 2SLGBTQ+ people.

During his speech, Trump also said it is now “the official policy of the United States government that there are only two genders: male and female.”

The executive order requires the government to use the term “sex” rather than “gender,” while mandating that identification documents issued by the government, including passports and visas, be based on what it described as “an individual’s immutable biological classification as either male or female.”

“This is quite ridiculous,” said Mulaisho, the founder and managing director of Queer and Trans Migrant Advocacy Alliance of Windsor-Essex. 

“What do you call me now? How do you perceive me to be? It’s a human rights violation.”

‘What affects the U.S. eventually also affects us here in Canada:’ Intersex advocate

Mulaisho said this will elicit and legitimize hatred against the larger 2SLGBTQ+ community.

“What affects the U.S. eventually also affects us here in Canada,” they said.

“There are so many problems going on right now in the world, let them focus on those that are actual problems instead of making sexuality, which is not a problem, a huge thing.”

They said they are also receiving “quite a lot of calls from the U.S.” where people are concerned for their safety. 

In Windsor-Essex, Mulaisho said they are hearing growing concerns about potential increase of hatred and violence.

Trans woman says order will cause more bigotry, hate 

Akshat Virmani moved from India to Windsor to feel comfortable in her skin as a trans woman.

“In my high school, I was bullied a lot,” Virmani said with tears in her eyes. “But there is hate and bigotry which is still prevailing in this society too.

“It is quite disgusting…The order will be causing even more division and more bigotry and hate.”

Virmani said she is feeling “anxious” in the wake of the order. 

“I’m definitely worried about my own safety… Our existence will be questioned, but it will not be eradicated,” she said.

“Transgender people’s lives are already at a risk because they are not accepted everywhere. That’s our reality, sadly.”

“It’s just bad. It sucks,” said Windsor author and trans woman Casey Plett, who now lives in Athens, Ohio. 

“It’s awful and also there is no point or rationale. You’ll notice that there’s no reason for this. No one has ever been hurt by being allowed to change gender markers on their identity documents.”

Plett said trans people in the U.S. and Canada are at risk of facing transphobia and hatred and says she worries that hatred will worsen now. 

2SLGBTQ+ organizations urge hope, not despair

Derrick Carl Biso, the team lead for administration and education at Trans Wellness Ontario, says Trump’s statements are false and warrant more education and awareness. 

“If we look at history, we have always existed,” said Biso, who identifies as a non-binary gender fluid person who uses he/they/she pronouns. “No one can dictate that away or speak it away or executive order that away.”

Like others, Biso anticipates more threats and violence and hardship in Canada in the wake of Trump’s order. 

“I feel very threatened in a way I haven’t maybe in the last five to 10 years,” Biso said, referencing comments made by Conservative Party of Canada leader Pierre Poilievre and policies in Alberta, Saskatchewan and New Brunswick.

Being a small part of the population, Biso said trans and gender diverse people are “not the problem.” 

“I encourage each other not to lose hope, not to despair or get depressed even though it’s pretty cold out there.”

Canada shouldn’t follow lead: National 2SLBTQ+ charity

Omid Razavi is the executive director at It Gets Better Canada, a national charity that focuses on uplifting and empowering 2SLGBTQ+ youth.

He said Trump’s order will pave the way for more discrimination in “one of the most polarizing moments in recent history.”

“We have been seeing an increase in policies and legislation that really are working against the 2SLGBTQ+. We have absolutely seen it in provinces across Canada. That’s the ripple effect,” he said.

He urges Canadian politicians not to follow pursuit as the transphobia and homophobia in Canada is “incredibly troubling.”

“The ignorance and discomfort of a few should not deny the existence or validation of many. The hope is that as we invite new leadership in Canada, that they will continue to honour what has made us proud as Canadians.”