The United States plans to impose taxes on sovereign wealth fund investments, or impact the private capital industry

On January 16th, US authorities proposed reforming tax policies, which may require sovereign wealth funds to pay taxes on their investments in the US, affecting some of the largest investors in the US private capital industry. The US Internal Revenue Service released a proposal in December last year to revise the relevant provisions of the Internal Revenue Code regarding the application for tax exemptions by sovereign wealth funds and some public pension funds. The proposal will expand the definition of "commercial activities" to include activities such as direct lending to enterprises, bond default restructuring, or creating tax obligations for sovereign wealth funds. These changes may also affect the structure of joint investments between sovereign wealth funds and pension funds through special purpose vehicles (SPVs) and private equity firms.