Tax incentives for VCEs are nationally regulated. 70% of the amount of a VCE's qualified investment in medium- or small-sized high and new technology enterprises can be used to offset its income tax. In addition, when such offsetting amount exceeds the VCE's taxable income in the current year, the excess can be carried forward to the following tax years for offsetting purposes.
Various financial incentives have been set out for qualified private equity managers and funds in cities including Beijing, Shanghai, Tianjin and Chongqing, under the local cities' policy.