The Research Of Inter-promotion Between Venture Capital Industry And Taxation

To promote national venture capital activities, many developed countries formulated a series of preferential tax policies. Preferential tax may decrease the risk of investments and increase the profit of investors. Being important in the whole process of venture capital activity, preferential tax, as a tool, was used to promote and guide the development of venture capital industry recent years.Venture capital is the main power to pull the high-technology industry going. Therefore, the developed level of it decides the high-technology industry and national economics directly. It not only relatives to technological innovation of other industries, but also increases the taxation on them.If the industry position of venture capital is confirmed, our government will work out some preferential tax policies for it, due to its tax-elasticity. On the base of comparing the tax policies of national and international, the paper gives some barriers of development of our venture capital activities and proves that venture capital has been an industry in China, from two aspects : demand and supply.There are two main lines in this paper. One is preferential tax policies could promote venture capital industry developing. Another is venture capital industry could increase taxation of country obviously. As a conclusion, the key of developing them is inter-promotion and win-win will be the result.