In recent years, the development of the capital market has become increasingly hot, and many investors have joined the investment industry of private equity funds. In our country, paying taxes according to law is one of the obligations of citizens. So, do private equity funds have to pay taxes? This problem stumped many investors of private equity funds. 1. Do private equity funds have to pay taxes? The "Document 140" recently issued by the Ministry of Finance and State Taxation Administration of The People's Republic of China clearly states that "the VAT taxable behavior that occurs during the operation of asset management products is the VAT taxpayer." The core meaning of the whole notice includes the following layers: asset management products have to pay VAT. For a long time, the operation of asset management products has been in the blind spot of tax supervision, and there are few tax records of asset management and trust products. With reference to Article 18 of the Notice, it will be implemented from May 16. It's the end of 65438+February, which means that the value-added tax for the first seven months may have to be paid back. How to calculate this tax and how to define the contract of asset management products is really a difficult problem to explain. However, private investors are temporarily unaffected. Now let's discuss a question related to the vital interests of private investors, that is, for private investors now, should their private funds be taxed? First of all, according to Article 1 of the Notice, "capital preservation income, remuneration, capital occupation fee and compensation" refers to the investment income that is clearly promised in the contract that the due principal can be fully recovered. The non-guaranteed income obtained during the holding period (including maturity) of the above-mentioned financial commodities does not belong to interest or interest income, and no value-added tax is levied. In other words, as long as it is not the promised income, there is no need to tax. Referring to the current private equity funds, in fact, it was stipulated in 20 14 that private equity funds should not promise to protect their capital. Therefore, as far as this article is concerned, all legal and compliant private equity funds are completely immune and do not need to be taxed. In addition, let's look at Article 2 of the Notice again: taxpayers purchase assets management products such as funds, trusts and wealth management products and hold them until maturity, which does not belong to the transfer of financial commodities mentioned in Item 4 of Item 5 of Article 1 of the Notes on Sales Services, Intangible Assets and Real Estate (Caishui [2016] No.36). In other words, all asset management products are not taxed from holding to maturity, and are not taxed from holding to maturity. Therefore, for those private equity funds with no duration, value-added tax may be paid in the future, but please refer to the first article first, so there is still no need to pay taxes. 2. What's the difference between Public Offering of Fund and private equity funds? (1) Differences in investment concepts, mechanisms and risk-taking Private equity funds and Public Offering of Fund are quite different in investment concepts, mechanisms and risk-taking except for some basic institutional differences. The main differences are as follows: 1, and the investment objectives are different. 2. Their performance incentive mechanisms are different. 3. Public Offering of Fund has strict procedures and strict policy restrictions on investment, including restrictions on shareholding ratio and investment ratio. The biggest difference between private placement and public offering is the incentive mechanism, profit model, supervision and scale. The specific investment methods, especially the stock selection criteria, are not different under the same style. (II) Style Differences For Public Offering of Fund, its investment style has been clear since its establishment. For example, some specialize in small-cap stocks, some focus on large-cap blue chips, some follow growth investment strategies, and some tap value-based opportunities with rich varieties, which can provide corresponding products for investors with different risk tolerance. As for private equity funds, most of them are small. At present, there are few private equity funds of 654.38 billion yuan in China. They pursue the absolute return on investment, not the scale to earn management fees. (III) Difference of raised funds 1. Fund-raising targets are different. 2. There are different ways to raise funds. 3. Information disclosure requirements are different. 4. Different investment restrictions. 5. Different performance rewards. Three. Conditions for the establishment of private equity companies What are the conditions for the establishment of private equity companies? (1) According to relevant laws and regulations, private fund managers are required to have appropriate capital to support their basic operations; (2) The paid-in capital or paid-in capital contribution shall not be less than RMB 654.38+million; (3) Among the products raised and managed by itself or managed by other institutions, the scale of investment in publicly issued stocks, bonds, fund shares of joint stock limited companies and other securities and their derivatives as stipulated by the China Securities Regulatory Commission is more than 6,543.8 billion yuan; (4) Having two qualified licensed principals and one compliance risk control principal; (5) It has a good social reputation, has no record of violation of laws and regulations in the last three years, and has no record of bad faith in financial supervision, industry and commerce, taxation and other administrative organs, commercial banks, self-discipline management and other institutions.