Study Of Tax Policy On Venture Capital In China

Venture capital investment is one of typical ways of investment in the age of knowledge-based economy. It is a kind of investment in the interest of generating a return through an eventual realization such as IPO or trade sale of company by not only providing stock capital to high-tech and growth-orientated startup enterprises, but offering the adversary service on management. Venture investment is composed of venture investor, venture investor institution and investee companies. It possesses the specialty differing from regular investment. Venture capital investment contributes greatly to the development of high-tech industries and new technology, the prompting of adjustment of economical structure, and creating more jobs.Tax revenue is not only the main form of government's financial revenue but the tool with which government macro-economically regulates and controls the development of economy. Current Western theory on tax indicated that tax can have a great influence on venture investment. Appropriate tax preference can reduce the venture capital cost, and enhance the prospective return of venture capital. Venture capital's development practice also indicated that tax policy can manifest the government the policy intention of supporting the venture capital development, and is an effective tool of promoting the venture capital development.Our country's venture capital began in the mid-1980s. After more than twenty years of development, the venture capital begins to take shape in our country; the total quantity of investment capital grows gradually, the investment domain also presents the multiplication. With the extrusion of growth enterprise board, venture investment obtains the channel of withdrawing and also can inevitably promote our country's scientific innovation, which can be anticipated. However, our country's tax policy has certain flaws, studying from environment of important system of venture investment development. Therefore, it has the important theory and the practical significance to conduct the thorough research on the tax policy of venture investment.The thesis first from the theoretical side, demonstrates the operation mechanism of venture capital, elaborates to economic effect of the venture capital taxing; next from international background, absorbs the related experience of venture investment and tax policy of western country; then from the practical side, constructs the stereotype of influencing factor of venture capital, and inquires about the extent of preferential benefit of the tax policy to the venture capital, resting on venture capital development and the current tax policy of our country's; finally, the, thesis proposed the ways of optimizing our tax policy on venture investment based on the conclusion of theory and analysis of reality. Based on above, the whole thesis is composed of four parts.The first part starts from the outline of venture investment and analyzes the economic characteristic of venture investment through fixing its definition. This part lies in demonstrating the economic theory of venture investment and taxing. First, has analyzed the venture capital main body, the venture capital operation mechanism as well as the venture capital main body fund flow and the taxable level. Then, utilizes and profits research results from the Canadian economist Baud Wed, uses two time of partial equilibrium model and analyzes the economic effect of venture capital, thus has provided the basis to analysis of venture capital and tax policy.The second part, through the comparison of venture capital and tax revenue policy of other countries, through induction and comparison of venture capital's three main bodies to American, British, Japanese and South Korea's venture capital drive policy, acquires some enlightenment.The third part focuses on the study on the effect of venture investment and tax policy. First, carry on the descriptive statistical analysis to our current venture capital so that obtains some characteristics of development of venture investment. Then, carry on the induction and the reorganization to present venture capital and tax policy as well as the related analysis. Finally, analyze the model of venture capital influencing factor formed by three variants, i.e. GDP of macro economic environment, actual preferential tariff of the high-tech enterprises and changeable rates of country research trial development funds. The last part focuses on sketches on drive police of venture investment and tax. It mainly bases conclusion of analysis to the model, involving venture capital's three main bodies of the venture capital operation mechanism and its self, and optimizes our present tax policy.