Research On Tax Policies Of China Private Equity

In this paper private equity investment fund refers to equity investments in unlisted companies and provide value-added services, including equity investment funds, industrial investment funds, venture capital funds and other non-securities investment funds. This private equity investments involve all stages of pre-IPO, mergers and acquisitions, equity transfer or management layer repurchase, etc. And last selling holdings to achieve equity value appreciation. Private equity funds are the carriers of private equity investment, it is able to disperse idle funds in the community together quickly to promote the capital to flow to high-tech industries and projects, thus opening up different financing channels from banks and the stock market. Therefore, in the background of excess liquidity in the current, funding pattern is not optimal, the capital market is not rich and SME financing is difficult, Studying on private equity has important strategic significance.Tax issues have a significant impact on the private equity industry. In 2007, the hedge fund Fortress Group and the Blackstone have been listed; tax issues become the focus in US political and financial circles. Since China introduction the private equity investments, improve the relevant Acts actively, amend the Partnership Enterprise Law, provides a legal basis for private equity funds in China’s. However, the tax is still restricting factor in the development of the PE industry, compared to overseas tax incentives to support the development of PE, we have a lot to do. To support the private equity fund, our government is necessary to improve tax policy in this field, so as to provide guidance to the tax treatment of various norms and operational aspects of private equity investment funds.In this paper, starting from the relevant tax policies of private equity, aims to clarify what policies are applicable for the different forms of tax payers. On the basis of the existing tax policies to analyze their shortcomings. To find problems and to solve them. By learning the tax laws of developed nations and areas, trying to raise both legal and feasible tax policies, hoping them to play some role for the development of China’s private equity funds.