Ordos wants to build private-equity city five year full tax refund

Fan Erdos reported May 5, this reporter learned that, has been "to build China's private capital city" and "PE/VC registered Paradise" Eerduosi government will be issued in the near future two private equity (PE) related documents, the two entitled "Eerduosi Equity Investment Fund Record Management Guidance" (hereinafter referred to as "the record guidance opinion　　") and the Eerduosi people's government on the encouragement of the development of equity investment enterprises (draft)," "The" encouragement "will be attracted to the landing of PE important weight. Among the most important support policies include the five-year 100% return on the registered PE tax place in Ordos and the return policy for five years and 50%.　　If passed, will be ordos to promote private lending to PE transformation since the city government's first policy to promote the document.　　In addition, the Eerduosi government is planning to form the "Ordos Stock Exchange", through a large number of unlisted small and medium-sized enterprises in the centralized level of equity hosting, listing transactions for the exit of PE to add a channel.　　Tax incentives in the "encouragement", the formulation of equity investment enterprises to carry out five aspects of support: registration in accordance with the registered capital subsidies, corporate income tax and business tax concessions, the office to give office subsidies, to give certain talent incentives and financial listing. Among them, the preferential margin of the tax is as follows: Within five years from the date of registration of the industrial and commercial enterprises, the enterprise income tax paid by the company enterprises and 100% of the local retention portion of the personal income tax paid by the partnership enterprises shall be returned by the same level finance in the form of subsidy.　　Each flag or district government may also grant a one-time start-up fee in accordance with the circumstances of the equity investment enterprises settled locally. In addition, the sales tax paid in the first year to the fifth year shall be refunded in full by the financial department from the beginning of the year to the second half of the year to the tenth year, and the local retention portion of the corporate income tax payable from the first year to the fifth year shall be refunded in full by the financial department　　For the newly-built office property of the equity investment enterprise which has difficulty in paying taxes, it is exempt from the deed and the property tax is exempted for 5 years.　　Rui Sen (Shanghai) Investment Co., Ltd. Senior advisor Feng Yu introduced, usually the later the policy is enacted, the more favorable, and such a preferential margin if implemented, will be "unprecedented." At present, according to different registration methods, equity investment enterprises to implement different tax policies. Where the operating income and other income of an equity investment enterprise established in the form of a limited partnership, the partners pay the income tax separately.　　The general partner of a natural person performing a partnership in a limited partnership shall apply the rate of 5%-35% of the five-level excess progressive tax; The limited partner who does not perform the partnership of the limited partnership is to pay the personal income taxes according to the 20% tax rate. Dong Chenhiao, director of private equity Division of China Headquarter of Ying Ke law firm calculate a account, assuming a LP investment 100 million in the fund, there are two projects listed, one billion may become 300 million, according to 20% of the tax rate to pay the individual income tax needsTo pay 40 million.　　Because of this, Feng Yu introduced, PE in registration, will give priority to tax factors. At present, the Chinese PE registered more places have Tianjin, Beijing, Shanghai, Shenzhen, Chongqing and so on.　　In Shenzhen and Tianjin, the subsidy is to subsidize 100% of the local reserve after the profit, and the three years are subsidized by 50% of the local reserve, and the subsidy in Chongqing will be the 100% return of the local retention of the enterprise income tax paid in the first and second years, and the second to the third year in half.　　Encourage PE to fall However, Ordos does not intend to give special encouragement to PE, which invests in the city's enterprises or projects.　　The reporter learned that in the "encourage opinion", there is no intention to "invest in the city of enterprises or projects" to grant additional subsidies, but this in other cities is a common way of subsidy.　　In Shenzhen, for example, if an equity investment fund invests in a company or project in the city, it will give a one-time reward according to the contribution of the city's economy to 30% of the local financial resources formed after the project exits or gains income, and the award of each project shall not exceed 3 million yuan.　　and Tianjin stipulates that the investment in the city's enterprises or projects, by the financial department of the project after the withdrawal or income earned by the local share of income tax 60% to give incentives. Eerduosi, deputy mayor of finance, Li Guo explained that this is because the intention to encourage the development of PE is to guide private lending funds sunshine.　　According to his estimate, the total amount of private funds between 50 billion to 100 billion.　　Eerduosi in recent years, the rapid expansion of economic scale, 2010 per capita GDP of more than 10,000 U.S. dollars. Most of these surplus funds flow to local SMEs, with 2 cents a month (2%) above the interest on the market, the annual yield of more than 20%.　　Although promoting the development of local economy, the lack of legal status of private fund-raising, it is difficult to prevent risks.　　Therefore, for the Eerduosi government, the main purpose of the development of PE is not to attract foreign capital, to support the development of local industries, but to standardize local funds to enter the legal norms of the channel. Jiuding investment partner Huang has said he does not want to be held hostage by the government when looking for a project.　　and a number of PE people believe that the possibility of finding a project in Ordos is not. According to the Eerduosi government issued in 2010 on deepening financial reform to promote the development of financial industry, to accelerate the development of financial industry as an important part of the implementation of structural transformation strategy.　　If the PE/VC is attracted to local registration, even if there are tax concessions, the local will still receive a certain amount of tax, and stimulate some industrial development. "PE may be here just to set up an office, the main place of work in other cities."　　"This is going to be a registered paradise," Li Guo said. and a local PE Xin ze Equity Investment fund deputy general manager Fangyongfei told reporters that the future development or to leave Ordos, "to Beijing" and so on.