Investing Behavior Effects Study Of Different Tax Revenue Policy On Private Equity Firm

Since Chinese government issued the Partnership Enterprise Law in2007, the investing conduct of investment organization became more autonomous. Because compareing with general limited corporation, Shareholder partners and limited partners have different right and duty. The most important point is, according to the partnership Enterprise Law, partnership needn’t take the responsibility of paying tax. Partnership only needs to pay the income tax.This tax system makes investment organization in partnership regime get more return than investment organization in limited regime, and make partnership become more competitive. With the new law issuing, the Private Equity investment organization is having much rapid development. And in2009, the establishment of growth enterprises market offers the investing conduct of Private Equity a good way to exit venture capital. Given all this, whether the tax system or the preferential policy change or not, it will have a strong effect on the investing conduct of Private Equity.This article will give a general introduction of the meaning of equity investment and the basic features of equity investment first, then emphasize the stage of development and enterprise strategy for JIUDING capital. Thirdly, the author will analyze the different tax systems in different countries to summarize useable experience.According to the theory and the analysis of JIUDING capital’s realistic state, author’s point is obviously rational. Base on the analysis,author will make some suggestion for Shareholders investment organization to enhance the motivation of investing conduct of Private Equity and boost it’s influence in nowadays Chinese economy field.