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New tax rules enrage expats in China

Anger is rising among employees of foreign companies in China over the planned removal of tax privileges for expatriates. At the end of this year, companies will no longer be able to pay benefits such as rent and school fees tax-free. In a recent survey, the US Chamber of Commerce (AmCham) in Shanghai is already warning that companies are leaving – in a big way. Overall, Shanghai as a business location is suffering from the change: Almost 70 percent of the companies surveyed said it would now be more difficult to find highly qualified personnel to work locally.

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