Based in Shenzhen,Serving the Greater Bay Area
Your trustworthy enterprise qualification consulting expert

How do private equity firms do tax planning? Teach you five tricks!

How do private equity firms do tax planning? Teach you five tricks! Speaking of taxes,Private equity firms should be quite talkative.,After all, taxes account for a large proportion of the cost of private equity funds.,Want to get more profits,So tax reduction and fee reduction are the focus of private equity companies。Here are five tips for tax planning for private equity funds:。1、Choose the appropriate way to reduce book profits. Book profits are reduced.,Taxes will also be reduced。How to lower it?

Limited partnership funds are "distributed first and taxed later",Fund investors declare and pay taxes themselves after receiving distribution income。If planning is better,By increasing the correlation

cost

offset against losses,Reduce book profits to reduce taxes。For example, increasing the depreciation rate of fixed assets,Increase depreciation amount decrease profit。The withdrawal ratio for bad debt provisions can also be increased,by management

cost

Expenses reduce profit for the year。

2、Choose the appropriate fund organization form. Private equity institutions choose the form of fund establishment.,It is recommended to choose a limited partnership。The operating income of a limited partnership adopts the principle of “divided first and taxed later”,No income tax is payable before distribution to each partner,Corporate private equity funds face the problem of double taxation。

3、Choose the appropriate form of investor when investing in a limited partnership private equity investment fund,You can choose to participate in the fund as a natural person or as a business as a limited partner.。A partnership as a legal person needs to pay corporate income tax。Natural person status partnerships are taxed according to the excess progressive tax rate of "individual industrial and commercial households' production and business income"。

Investors need to consider various tax relief policies,Then comprehensively compare which form of subject to choose。4、Reasonable use of pre-tax deductions

cost

Make reasonable use of deductible pre-tax items,For example, turning some cash payments to employees into employee welfare projects,Fully expand the items that can be deducted before tax;Enterprises can also use loan financing as a source of funds.,Reduce investment of own funds,Partnership finances

cost

will also increase。

5、Taking advantage of the preferential policies in the registration area, private equity funds will basically consider whether there are preferential policies in that place when choosing a registration address.,At present, the Qianhai area of ​​Shenzhen has regional preferential policies such as corporate income tax and personal tax exemption for private equity funds.,If you want to register a private equity fund company, you can consider Qianhai。


About Hong Kong Xintong

Hong Kong Xintong focuses onGuangdong and Hong Kong license platesShenzhen Hazardous Chemicals Business LicenseShenzhen labor dispatch licenseandShenzhen Charity Foundationapplication services,Assist customers to applyShenzhen travel agency business licenseShenzhen pawn shop business license、Shenzhen auction house license and other mainstream domestic financial licenses,Support enterprises to achieve compliance expansion of cross-border financial business。Also availableODI overseas investment registration、International travel agency registration and other services,Help enterprises expand their presence in international markets。Provide one-stop compliance solutions for enterprises。To learn more,Please contactHong Kong Information Communications Consultant

No reproduction without permission:Port communication » How do private equity firms do tax planning? Teach you five tricks!

Port communication,Your Guangdong-Hong Kong-Macao Greater Bay Area qualification agency expert。

Phone/WeChat 134 170 46218WeChat QR code