Tax Treatment of Legal Fund Structures for Venture Capital Investments in the Czech Republic: a Comparative Study

článek ve sborníku ve WoS nebo Scopus

angličtina

The sector of young growth-oriented ventures struggles with a lack of external sources of financing. In advanced market economies, venture capital represents a significant source of equity finance at this stage of the life cycle of enterprises. The Czech Republic suffers from the underdevelopment of this financial market sector, with nonexistent provision for suitable legal and organizations forms of venture capital funds in domestic legislation and the method of taxation of investment yields at both fund and investor levels being viewed as some of the causes of this undesirable state of affairs. In order to encourage the development of the market, this paper addresses filling the existing research gap concerning the following issues of the Czech venture capital market: How the current Czech legislation regulates the legal fund structures for VC investments? What is the tax treatment of VC funds and individual investors in the Czech Republic? What are the legal and tax regulations on the main European markets for venture capital? What are the key requirements for improvements of the current situation on the Czech venture capital market? The nature of this study is explorative and it relies on primary and secondary data. Results of the study stress that as compared to economies boasting developed financial markets, the non-existence of the Limited Partnership legal form in particular is a weak spot of the current Czech legislation. Inadequate manner of market regulations can also be pointed out in addition to inflexible corporate law, tax obstructions and non-transparency of the current structures.

Venture Capital, Tax and Legal Environment, Fund Structures, Tax Treatment

ZINECKER, M.; SVIRÁK, P.; GREBÍKOVÁ, M.

2012

12. 11. 2012

IBIMA Publishing

Barcelona

978-0-9821489-8-3

Innovation Vision 2020

2012

1

880

890

11