BEIJING — Individual partners of Chinese venture capital enterprises will now pay less income tax throughout the next five years, as new preferential tax policies will be implemented next year.

The decision was made on Dec 12 at the State Council’s executive meeting chaired by Premier Li Keqiang, with a goal to inspire venture capital investment, enhance entrepreneurial and innovative efficiency, boost investment and facilitate the commercial use of science and technological achievements and prompt industrial upgrading.

Starting from Jan 1, 2019, individual partners of venture capital enterprises can choose to pay income tax either at the rate of 20 percent of their income from equity transfers and dividends or at the progressive rates of 5 percent to 35 percent levied on their income in excess of a specific amount.

The purpose of the policy, to be implemented for five years tentatively, is to ease the tax burden of individual partners of venture capital enterprises, said the meeting.