At the State Council executive meeting on Sept 6, decisions were made on tax changes regarding venture capital funds.

Local preferential tax policies for venture capital funds tax will be kept stable, the Premier said.

Concerned departments should maintain the overall tax burden while improving tax policies according to the revised individual income tax law, he said.

These rules should not be retroactive, Premier Li added.

Policies must be improved to ensure that the overall tax burden of venture capital funds does not increase, according to the meeting. Venture capital funds play an important role in direct financing of enterprises and are of great significance to entrepreneurship, innovation and employment, Premier Li said, urging related departments to further promote the development of venture capital funds through fiscal, taxation and financial policies.

“The reason why we have made the three requirements above is to give society a clear signal and to further stabilize market expectations,” Premier Li said.