TikTok is the leading destination for short-form mobile video. Our mission is to inspire and enrich people's lives by offering a home for creative expression and an experience that is genuine, joyful, and positive. TikTok has global offices including Los Angeles, New York, London, Paris, Berlin, Dubai, Singapore, Jakarta, Seoul, and Tokyo.

TikTok is publishing this tax strategy for the financial year ended 31 December 2023, in accordance with the provisions of section 22(2) of Schedule 19 of the UK Finance Act 2016. This tax strategy applies to all UK subsidiaries of Bytedance Ltd. (together "TikTok"). It has been approved by the directors of TikTok Information Technologies UK Limited.

TikTok's approach to tax

TikTok complies with tax laws in every country we operate in around the world. In the UK, we are committed to conforming with applicable laws and tax practices to ensure we declare and pay the correct taxes, including corporate income tax, VAT and employment taxes and other applicable taxes, if any.

How TikTok manages tax risks

As a company operating in multiple jurisdictions, we face risks in respect of uncertainty of application of tax laws that are complex and may continuously change. Changes to existing tax laws or changing interpretations of existing laws, could have a material impact on our business and financial position. Changes could lead to a subsequent change in our tax obligations and this is why we have structures in place to ensure we comply with all applicable laws and regulations.

TikTok manages its tax risks through its tax management department, one of the core finance functions which is under the Group Chief Financial Officer's (CFO) ultimate responsibility. Our tax management department comprises qualified and experienced tax professionals who manages the internal procedures we have in place in order to ascertain that we comply with our tax obligations across our business operations. The tax management department proactively identify and monitor tax risks and continuously follow the latest trends and changes in tax legislation in the jurisdictions we operate in. We are also closely monitoring the latest developments in taxation of the digital economy, especially the work done in the OECD through the BEPS project. For complex transactions where the applicable tax treatment is deemed uncertain, TikTok regularly utilises external tax consultants for professional advice to support the tax management department in mitigating tax risk.

TikTok's attitude towards tax planning

TikTok's principle on tax planning is to ensure all our tax compliance obligations are met and to support the needs of the business in executing the company's mission.

TikTok may engage in reasonable tax planning that is aligned with commercial and economic activity of the business which must be compliant to local tax compliance requirements. TikTok may respond to tax incentives and exemptions, under local applicable tax laws provided it is compliant with local tax compliance requirements and does not lead to any abusive result.

Tax planning activities includes utilising potential incentives and reliefs where such are available to us, such as research & development credits and claiming reliefs under double tax treaties to eliminate the risk of double-taxation.

TikTok's tolerance to tax risks

TikTok's priority is to comply with all tax laws and regulations where we operate. In terms of our tolerance to tax risks, our tax management department continuously and proactively keep up to speed to changes in tax law and ensure procedures are in place to identify, manage and mitigate relevant tax risks to a low level.

How TikTok works together with HMRC

TikTok aims to have an open, transparent and collaborative relationship with HMRC ensuring prompt disclosure in all tax matters.

We engage with our Customer Compliance Manager to help HMRC better understand our business and to openly and proactively discuss any relevant tax issue that may arise.