No fuss over new personal tax rules

SHANGHAI - For some foreigners working in China, the country's newly amended income tax law will bring some initial joy that may turn to disappointment.

While the monthly personal income tax threshold for foreign employees has been raised at the same rate as that for their Chinese counterparts, limits to the deductions they will be allowed will result in their being taxed at the same rate as they were before the changes, or even more in the case of high-income earners.

The monthly tax threshold for foreigners has been raised by 1,500 yuan ($230) to 3,500 yuan, the same as for Chinese taxpayers. However, the deductions for expenses, a special subsidy for foreigners, have been reduced by the same amount, 1,500 yuan, to 1,300.