Research On Tax Regulation Of Private Equity Fund In China

Private equity fund raising by way of non-public funds, with growth ofinvestment in the project or enterprise, continue to promote its development,investment which receive investment income from equity investment, and when thetime is ripe, through mergers and acquisitions, repurchase, listed, etc. exit.As a newprivate equity fund investment tools and methods, as well as China’s development inthe West is not a long time, but with the flexibility of its own high and low risk factorsand other characteristics, is in addition to stocks and bonds by investors innovativeways to finance the pro-gaze.With China’s "Partnership Enterprise Law" amendment"Personal Income Tax Law" enacted, our partnership model, especially thedevelopment of a limited partnership-based private equity fund has been increasinglyconcerned with the attention.Tax as an important regulator of the country’s economic development lever forthe development of different types of the body of a country’s economy has asignificant impact and significance.In China, the relevant tax laws vary for differenttypes of private equity fund regulation, subject to different tax policy is vary.Among this article, the author first private equity fund through the concepts,features, and private equity funds in the United States (represented countries) andChina’s development status and history of the sort, analyze private equity fund in thehistory of our country to develop and grow the origin, which peep private equity funddevelopment gap between China and Western countries exist.In the second part, the author points different organizational forms of privateequity funds, carried out a detailed analysis of the characteristics. To indicate that thecompany made, limited partnership, trust system of three private equity fundsdevelopment characteristics and limitations, while the third part analyzes the statusquo of China’s private equity fund tax law to pave the way.In the third part, which is the focus of this article, the authors were manufacturedby private equity funds and private equity limited partnership fund described andanalyzed.Our system of private equity fund company tax law is more abundant, taxincentives tend to have more, but the existence of this double taxation problem.Typeof private equity limited partnership is a new type of private equity fund, which ismore flexible mode of operation, the company avoids the double taxation system, butfew of its own enjoyed preferential tax policies.In the fourth section, the authors proposed to improve our thinking private equityfund tax law provisions, made some of their own suggestions to our private equityfunds for tax law helpful.