Circular on Policy Issues Concerning Income Tax on Individual Partners of Venture Capital Firms
关于创业投资企业个人合伙人所得税政策问题的通知
Venture capital firm partners may pay tax on an investment fund basis
(Issued by the Ministry of Finance, the State Administration of Taxation, the National Development and Reform Commission and the China Securities Regulatory Commission on January 10, 2019 and effective as of January 1, 2019 until December 31, 2023.)
(财政部、国家税务总局、国家发展和改革委员会、中国证券监督管理委员会于二零一九年一月十日发布，自二零一九年一月一日起执行，至二零二三年十二月三十一日止。)
Cai Shui [2019] No.8
财税〔2019〕8号
Finance departments (bureaus), development and reform commissions, securities regulators and offices of the State Administration of Taxation of the provinces, autonomous regions, municipalities directly under the central government and cities with independent development plans, and the Finance Bureau and the Development and Reform Commission of the Xinjiang Production and Construction Corps:
各省、自治区、直辖市、计划单列市财政厅（局）、发展改革委、证券监督管理机构，国家税务总局各省、自治区、直辖市、计划单列市税务局，新疆生产建设兵团财政局、发展改革委：
With a view to further supporting the development of venture capital firms (including venture capital funds; hereinafter collectively referred to as “VCF”), we hereby notify you of relevant individual income tax policy issues as follows:
为进一步支持创业投资企业（含创投基金，以下统称创投企业）发展，现将有关个人所得税政策问题通知如下：
1 . A VCF, when calculating the individual income tax payable by its individual partners on their income sourced from the firm, may do so either on a single investment fund basis or on the basis of the entire income of the firm for the year.
一、创投企业可以选择按单一投资基金核算或者按创投企业年度所得整体核算两种方式之一，对其个人合伙人来源于创投企业的所得计算个人所得税应纳税额。
For the purposes of this Circular, the term “VCF” means a venture capital firm (fund) organized as a partnership that complies with relevant provisions of the Tentative Measures for the Administration of Venture Capital Firms (Order of the NDRC and nine other departments No.39) or the Tentative Measures for the Regulation of Private Investment Funds (Order of the CSRC No.105) on venture capital firms (funds) and has completed record filing and operates compliantly in accordance with the aforementioned provisions.
本通知所称创投企业，是指符合《创业投资企业管理暂行办法》（发展改革委等10部门令第39号）或者《私募投资基金监督管理暂行办法》（证监会令第105号）关于创业投资企业（基金）的有关规定，并按照上述规定完成备案且规范运作的合伙制创业投资企业（基金）。
2 . Where a VCF elects to effect calculation on a single investment fund basis, its individual partners shall calculate and pay individual income tax on the distributable equity transfer income and dividend income derived from the fund in question at a tax rate of 20%.
二、创投企业选择按单一投资基金核算的，其个人合伙人从该基金应分得的股权转让所得和股息红利所得，按照20%税率计算缴纳个人所得税。
Where a VCF elects to effect calculation on the basis of its entire income for the year, its individual partners shall calculate and pay individual income tax on the income derived from the VCF as for “business income” at a progressive tax rate of 5-35%.
创投企业选择按年度所得整体核算的，其个人合伙人应从创投企业取得的所得，按照“经营所得”项目、5%-35%的超额累进税率计算缴纳个人所得税。
3 . The phrase “calculation on a single investment fund basis” means the calculation and payment of tax by a single investment fund (including a VCF established without using the word “fund” in its name) by the methods respectively set forth below on the equity transfer income and dividend income derived from different venture capital projects during one tax year:
三、单一投资基金核算，是指单一投资基金（包括不以基金名义设立的创投企业）在一个纳税年度内从不同创业投资项目取得的股权转让所得和股息红利所得按下述方法分别核算纳税：
(1) Equity transfer income: the equity transfer income derived from a single investment project is calculated based on the balance remaining after subtracting the original value of the equity and the reasonable expenses incurred at the transfer stage from the equity transfer income for the year (the method of determining the original value of the equity and the reasonable expenses incurred at the transfer stage is handled with reference to relevant policies on individual income tax on equity transfer income); the equity transfer income of a single investment fund is calculated based on the balance remaining after deducting the losses from the income from the different investment projects during one tax year, and if the balance is greater than or equal to zero, the same is confirmed as the equity transfer income of the fund for the year; if the balance is less than zero, the fund's equity transfer income for the year is counted as zero and may not be carried forward to successive years.
（一）股权转让所得。单个投资项目的股权转让所得，按年度股权转让收入扣除对应股权原值和转让环节合理费用后的余额计算，股权原值和转让环节合理费用的确定方法，参照股权转让所得个人所得税有关政策规定执行；单一投资基金的股权转让所得，按一个纳税年度内不同投资项目的所得和损失相互抵减后的余额计算，余额大于或等于零的，即确认为该基金的年度股权转让所得；余额小于零的，该基金年度股权转让所得按零计算且不能跨年结转。
An individual partner shall calculate the tax payable by him/her based on the share of the equity transfer income of the fund for the year distributable to him/her, and the VCF shall withhold such individual income tax before March 31 of the following year. If the conditions set forth in the Ministry of Finance and State Administration of Taxation, Circular on Tax Polices Relevant to Venture Capital Firms and Individual Angel Investors (Cai Shui [2018] No.55) are satisfied, an individual partner of a VCF may calculate the tax payable by him/her after deducting 70% of the investment in the transferred project from the share of the equity transfer income of the fund for the year distributable to him/her, and if the amount cannot be fully deducted for the period in question, the remainder may not be carried forward to successive years.
个人合伙人按照其应从基金年度股权转让所得中分得的份额计算其应纳税额，并由创投企业在次年3月31日前代扣代缴个人所得税。如符合《财政部 税务总局关于创业投资企业和天使投资个人有关税收政策的通知》（财税〔2018〕55号）规定条件的，创投企业个人合伙人可以按照被转让项目对应投资额的70%抵扣其应从基金年度股权转让所得中分得的份额后再计算其应纳税额，当期不足抵扣的，不得向以后年度结转。
(2) Dividend income: the dividend income derived from a single investment fund is calculated based on all of the dividend and extra dividend income and other fixed-return securities income sourced from the invested projects.
（二）股息红利所得。单一投资基金的股息红利所得，以其来源于所投资项目分配的股息、红利收入以及其他固定收益类证券等收入的全额计算。
An individual partner shall calculate the tax payable by him/her based on his/her share of the dividend income of the fund distributable to him/her, and the VCF shall withhold individual income tax each time such dividends are distributed.
个人合伙人按照其应从基金股息红利所得中分得的份额计算其应纳税额，并由创投企业按次代扣代缴个人所得税。
(3) Other than the aforementioned deductible costs and expenses, other expenditures incurred by a single investment fund such as the management fee and performance remuneration paid to the investment fund manager may not be deducted at the time of calculation.
（三）除前述可以扣除的成本、费用之外，单一投资基金发生的包括投资基金管理人的管理费和业绩报酬在内的其他支出，不得在核算时扣除。
The calculation methods for single investment funds specified in this Article apply solely to the calculation of the tax payable by individual partners of VCFs.
本条规定的单一投资基金核算方法仅适用于计算创投企业个人合伙人的应纳税额。
4 . The phrase “calculation on the basis of the entire income of a VCF for the year” means calculation of the income distributable to the individual partners after the deduction of costs, expenses and losses from the gross revenue of the VCF each tax year. If the conditions set forth in the Ministry of Finance and State Administration of Taxation, Circular on Tax Polices Relevant to Venture Capital Firms and Individual Angel Investors (Cai Shui [2018] No.55) are satisfied, an individual partner of a VCF may calculate the tax payable by him/her after deducting 70% of the investment in the transferred project from the business income of the VCF distributable to him/her. If the calculation for the year produces a deficit, the same may be carried forward to subsequent years in accordance with relevant provisions.
四、创投企业年度所得整体核算，是指将创投企业以每一纳税年度的收入总额减除成本、费用以及损失后，计算应分配给个人合伙人的所得。如符合《财政部 税务总局关于创业投资企业和天使投资个人有关税收政策的通知》（财税〔2018〕55号）规定条件的，创投企业个人合伙人可以按照被转让项目对应投资额的70%抵扣其可以从创投企业应分得的经营所得后再计算其应纳税额。年度核算亏损的，准予按有关规定向以后年度结转。
If an individual partner on whom tax is levied under the “business income” item does not have integrated income, he/she may deduct basic deductible expenses, special deductions, special expense deductions and other deductions determined by the State Council. Where an individual partner derives business income from multiple sources, he/she shall calculate all of his/her individual income tax together, and may deduct the aforementioned expenses and deductions only once.
按照“经营所得”项目计税的个人合伙人，没有综合所得的，可依法减除基本减除费用、专项扣除、专项附加扣除以及国务院确定的其他扣除。从多处取得经营所得的，应汇总计算个人所得税，只减除一次上述费用和扣除。
5 . Once a VCF opts for calculation on a single investment fund basis or on the basis of the entire income of the firm for the year, it may not change the same for three years.
五、创投企业选择按单一投资基金核算或按创投企业年度所得整体核算后，3年内不能变更。
6 . Where a VCF opts for calculation on a single investment fund basis, it shall, within 30 days of completing record filing in accordance with Article 1 hereof, carry out record filing of its calculation method with the competent tax authority. If it fails to carry out record filing, it shall be deemed to have opted for calculation on the basis of the entire income of the firm for the year. Where a VCF has completed record filing before January 1, 2019 and wishes to opt for calculation on a single investment fund basis, it shall carry out record filing of its calculation method with the competent tax authority by March 1, 2019. If a VCF wishes to revise its calculation method after the lapse of three years, it shall carry out record filing anew with the competent tax authority by January 31 of the year immediately following the year in which the three-year period lapsed.
六、创投企业选择按单一投资基金核算的，应当在按照本通知第一条规定完成备案的30日内，向主管税务机关进行核算方式备案；未按规定备案的，视同选择按创投企业年度所得整体核算。2019年1月1日前已经完成备案的创投企业，选择按单一投资基金核算的，应当在2019年3月1日前向主管税务机关进行核算方式备案。创投企业选择一种核算方式满3年需要调整的，应当在满3年的次年1月31日前，重新向主管税务机关备案。
7 . When a tax authority carries out tax levy administration and follow-up administration work in accordance with the law, it may request that the development and reform department and/or the securities regulator verify whether a VCF and the projects in which it has invested comply with relevant provisions, and the development and reform department and the securities regulator shall offer their cooperation.
七、税务部门依法开展税收征管和后续管理工作，可转请发展改革部门、证券监督管理部门对创投企业及其所投项目是否符合有关规定进行核查，发展改革部门、证券监督管理部门应当予以配合。
8 . This Circular shall be effective as of January 1, 2019 until December 31, 2023.
clp reference:3230/19.01.10 issued:2019-01-10 effective:2019-01-01八、本通知执行期限为2019年1月1日起至2023年12月31日止。
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