Promote The Development Of China's Venture Capital Industry Tax Law Research

The current world has entered a new era of intellectual economy. As the core of intellectual economy, high-technology industry, which is one of the biggest and most important economic powers of any advanced economy, has become a pillar of economic development gradually. In comparison with those traditional industries, high-tech industry is with the obvious characters of high input, high risk, and high income. Compatible with the 'three-high' character of high-tech industry, a kind of new financing mechanism, venture capital, arisen. It is proved by the economic practice of different countries that the development of venture capital trade is the key to realize high-tech industrialization. However, compared to western developed countries and regions, the Chinese venture capital trade is still in its beginning stages. Along with the rapid development of high-tech industry, Chinese venture capital trade need to establish a favourable macroeconomic environment, especially a favourable tax policy environment, which is a significant content of the process of high-tech industrialization.Consisting of the four parts as the main body and the conclusion, this article aims to tackle with this issue: to establish a comprehensive legal and legal system governing the venture capital taxation is of immeasurable value to healthy development of China's venture capital trade . By studying on laws governing venture capital selects the legal systems on venture capital taxation of multiple countries , and by analyzing the current situation and problems in China ,some countermeasures on taxation law are put forward .In part one, this article starts with analyzing the meaning and characters of venture capital, and then reviews its history and difficulties in the process of development in China. Furthermore, this part indicates the feasibility and necessity, as well as the theoretical foundation that venture capital trade should be gave necessary tax law support by government.In part two, this article draws on the lessons of venture capital taxation law by briefly introducing the measures for developing venture capital by developed countries, who use some measures that are fit to venture capital industry in tax system, object, preference, condition and so on.The following part three mainly discusses the current situation of Chinese tax law system within the venture capital trade from two aspects: the deficiency in legal system of tax revenue as well as the necessity of perfecting the current tax measures.In part four, the dissertation puts forward several suggestions and the framework for creating the legal system on venture capital taxation in China, inclusion the rule obeyed in legislation and the main forms of tax preferences. As the principal parties involved in the operations of venture capital are the investors, the venture capital investing institution, and the portfolio company, who differ from each other in functions and operational characteristics, different legislation advices in the tax preferences and types are given .Finally, the conclusion part emphasizes once again the urgency and importance of the development of venture capital , with synthesizing the key principles for establishing China's taxation system and legal framework of venture capital.