The State Administration of Taxation ("SAT") has recently issued the Announcement on Revising the Individual Income Tax Return (the "Announcement"), retrospectively effective from January 1, 2019.
The Announcement expressly states that, for the purpose of getting aligned with policies released under the new individual income tax regime, revisions introduced this time to the Individual Income Tax Return are designed to consolidate and simplify the content of tax filing, standardize the data criteria, and guide and encourage online tax filing, so as to ensure the new tax regime will be put into practice in an all-round and smooth manner and key policies for individual income tax will be effectively carried out. Among these revisions in three aspects are the "formulation and introduction of the Record-filing Form for Partnership Venture Capital Firms under the Single Investment Fund Based Calculation Method and the Individual Income Tax Return for Partnership Venture Capital Firms under the Single Investment Fund Based Calculation Method, pursuant to relevant policies for income obtained by venture capital firms from equity transfer".