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VCLP Tax Incentives & Concessions

  • Foreign limited partners: If you are a foreign limited partner in the VCLP that owns an investment for at least 12 months and if you are either exempt from tax in your country or provide less than 10% of the VCLP’s committed capital, your gains or losses are not assessable or deductible and are disregarded for capital gain tax purpose when you lodge online tax return.
  •  General partners: You can be entitled to a payment of carried interest that is taxed as a capital gain rather than as revenue if you are a general partner of a VCLP for at least 12 months.

ESVCLP Tax Incentives & Concessions
There are some tax incentives in ESVCLPs, which are provided for early stage venture capital investment in Australia. For online Australian tax return, this program offers:

  • A flow through tax treatment for a ESVCLP;
  •  Investors (both Australian and foreign limited partners) will get an exemption from capital gain tax on their share of profits from the disposal of eligible venture capital investments made through an ESVCLP;
  •  Limited partners receive a non-refundable carry forward tax offset of up to 10% of their eligible contributions;
  • General Managers can claim their carried interest in the partnership on the capital account, rather than revenue.  

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