The incomes of foreign employees in China are taxed by the same progressive tax rates as incomes of Chinese employees. The calculation process is only slightly different from Chinese nationals. The same tax rates and tax brackets also apply for the incomes for expatriates working in China or for Chinese companies. Foreign employees may, however, deduct an amount of 4,800 RMB. Moreover, some allowances paid by the employer are not taxable, including allowances for home leave (only applicable twice a year), language training, children’s education, housing rental, moving, food, washing of clothes and business trip expenses.