Research And Recommendation Regarding The Tax Policies Of The Investment And Exit Of Private Equity Fund In Partnership

With the development of the domestic policy environments and the improvement of the capital market in the recent ten years,the Chinese private fund market made significant development and became the one of important strengths in the Chinese capital market which further solve the difficulties in the financing requirement of the small and medium enterprises(“SMEs”)in China,and drive the progress of the management and business of these SMEs.As the important leverage of the macro-economic control,the burden of tax and the tax preference policies would make the direct impact on the investment and exit decisions made by the private fund.In essence of the connections between the principles and the practices,the research analyzed the current Chinese tax polices applicable for the private fund established in partnership,on this basis,the research also analyzed the tax implications on private equity fund,the investor of the private fund and the investment exit of the private fund.In addition,the research summarized the uncertainties and problems associated with the private fund industry.Furthermore,in connection with the tax policies promulgated in other foreign countries,the research made the recommendations on how to practically improvement of the tax policies to facilitate the development of the private fund industry in China.