The Reasearch On China Venture Capital Tax Policies

Venture capital is a kind of special investment in intellectual economy age.It offers equity capital to high-growth venture enterprises which are mainly science and technology ones, provides management and consultant service for venture enterprises in order to acquire mid-term and long-term capital gains by transferring stock after venture enterprises grow up. Venture capital in China started with its development in the mid-term of 80 in the twentieth century. After almost twenty years, venture capital has possessed preliminary scale. However, the imperfect tax policies are the most important factors that hinder the development of venture capital, which lacks powerful tax policies support.As a major policy means of government, fiscal policy bears critical support to venture capital. Tax is not only the primary most revenue of government but also the policy instruments mostly used by government to macro regulate the economy. The modern western tax theory indicates that tax has important effect on venture capital and that tax policy is an effective instrument of promoting the development of venture capital.This article analyzes different invest gains under the condition of tax and off-tax by using partial-equilibrium model. Mainly researches the relationship between tax policies and venture capital, point out that imperfect tax policies are the most important factors that hinder the development of venture capital.This article analyze the status quo and problems of venture capital development in China, introduces contents about tax policy on venture capital from the point of investors, venture capital firms, and venture enterprises, and analyzes the problems of tax policy on venture capital. Venture capital start early in western developed countries, there is much in their experience that we can use of, such as tax policies. By using the experience of other countries for reference, we suggest many polices that are suit for national conditions.