Research On The Law Problems Of Taxation About Venture Capital In China

Science and technology is the first push power of the economic and social development during the era of intellectual economy, and the pillar of the economic increase in a country or an area must be the high-tech industry, which is the core of intellectual economy. Every year, there are a lot of science and technology fruits, however, the rate of the transform of science and technology fruits is far more lower than the rate in the developed country, and one of the important reasons is the lack of invest. It's known that the high-tech industry has the important characters of high input, high risk, and high income. Because of these characters, it's hard for the traditional financing mechanism to meet the demand. Compatible with the development and the intellectual economy and high-tech industrialization, so a kind of new financing mechanism, venture capital, which is composed of investors, venture capital investing institution and invested company and is indifferent from the traditional financing mechanism, arisen. It is proved by the economic practice of different countries that venture capital is impotent part of invest area in a country and the development of venture capital is the key to realize high-tech industrialization and further advance the construction of industry.Venture capital in china has achieved a lot after a period of development. However, there are still some problems. The system supplied by the government is still inadequate, such as the incompletion the withdraw mechanism of venture capital and so on, of which is the lack of support of the tax law. It's widespread to use tax as a method of macroeconomic control to support the development of venture capital, so we should learn from developed country in which the law system of taxation to support venture capital is adequate, and perfect the law system of taxation in china.Consisting of the five parts as the main body, this article starts from the introduction of conception and characters of venture capital, and expresses that the law of taxation, as the important method of macroeconomic control, should support the development of venture capital, then puts forward some countermeasures on taxation law after studying the law systems on venture capital taxation of multiple countries and analyzing the current situation and problems in China.The first part introduces the concept and characters of venture capital, and indicates the meaning to develop venture capital in china.The second part indicates the theoretical foundation that venture capital should be given necessary support by government from perspective of economy and law of taxation.The following part three compares and analyzes the measures for developing venture capital mainly about tax system, preference, condition and avoiding repetitive taxation in developed countries, then draws on the lessons of venture capital taxation law in order to perfect the law system of taxation in china.In part four, this article reviews venture capital's history and law of taxation about it in china, then analyzes the deficiency in legal system of taxation as well as the necessity of perfecting the current tax measures.The fifth part forward several suggestions about the legal system of taxation on venture capital in China. Firstly, this article puts forward the rule obeyed in legislation and the main forms of tax preferences. Secondly, on the base of the principal parties involved in the operations of venture capital ,which are the investors, the venture capital investing institution, and the invested company, who differ from each other in functions and operational characteristics, this article gives different legislation advices in the tax preferences and types according to these parties'different functions and operational characteristics.