1. Do private equity funds have to pay taxes on dividends?
Fund dividends are tax-free income. According to the Notice on Tax Issues Concerning Securities Investment Funds issued by the Ministry of Finance of People's Republic of China (PRC) and State Taxation Administration of The People's Republic of China, the income distributed by the fund to investors is temporarily exempted from income tax.
Second, the concept of fund dividends
Concept introduction
Fund dividend means that the fund distributes part of the income to fund investors in cash, which is originally a part of the net value of the fund unit. People usually refer to funds mainly as securities investment funds. There are three main analysis methods of securities investment: basic analysis, technical analysis and evolution analysis, in which the basic analysis is mainly applied to the selection of investment objects, while the technical analysis and evolution analysis are mainly applied to the temporal and spatial judgment of specific investment operations as an important supplement to improve the effectiveness and reliability of investment analysis.
Third, the tax issue at the level of private equity funds.
1. Tax issues at the fund level. Among them, the tax problem at the fund level is different because of the different organizational forms of private equity funds. Income from securities trading or securities trading by private equity funds of enterprises shall be taxed in accordance with the provisions of the enterprise income tax law, and income tax shall be calculated according to the income from property transfer and interest, with the tax rate of 25%. As stipulated in Article 26 of the Enterprise Income Tax Law, the income from equity investment such as dividends and bonuses among eligible resident enterprises belongs to "tax-free income", and when the private equity fund of an enterprise obtains dividends and bonuses from the invested enterprise, it can be exempted from income tax.
2. Among them, "dividends, bonuses and other equity investment income between qualified resident enterprises" refers to the investment income obtained by resident enterprises directly investing in other resident enterprises.
In addition, there are special preferential tax policies for venture capital enterprises to engage in venture capital that the state needs to support and encourage. Notice of State Taxation Administration of The People's Republic of China of the Ministry of Finance on Promoting the Development of Venture Capital Enterprises in 2007, Regulations on the Implementation of Enterprise Income Tax Law in 2008 and 2009.
The Notice of State Taxation Administration of The People's Republic of China, People's Republic of China (PRC) on Implementing Income Tax Preferences for Venture Capital Enterprises in 2000 has relevant preferential policies, including 87 items.
Document No.1 proposed that venture capital enterprises should invest in unlisted small and medium-sized high-tech enterprises for two years (24
Month) above, meet the relevant conditions, according to 70% of its investment in small and medium-sized high-tech enterprises, holding more than 2.
Deduct the taxable income of venture capital enterprises in the current year; If the deduction is insufficient in the current year, it can be carried forward in future tax years.
The above is the answer to the question whether dividends of private equity funds should be taxed. Private equity fund countries stipulate that all dividends paid through investment funds can be exempted from income tax, which is a great benefit for investors. Investing in private equity funds not only bears certain risks, but also attracts investors' desire to invest, making funds more mobile, which is a win-win situation for fund companies and investors.