Category Taxation in Cuba

Cuba’s FDI Reaches $2 Billion

November 6, 2017 Taxation in Cuba

Cuban foreign investmentHAVANA – Cuba’s tax breaks may have proven effective at attracting new investment into the country.

Last week the government of Cuba announced that it has so far attracted more than USD 2 billion worth of foreign investment into the country.

Cuba needs approximately USD 2 billion in investment per year in order to keep its economy afloat.

The new investments are spread out over the 30 agreements signed so far this year.

Additionally, a further 80 deals are under negotiation, with 15 being nearly complete and potentially being ready to sign this year.

Out of the 30 deals, 11 are for businesses with 100 percent foreign ownership, and 14 are for administrative and production agreements.

It is widely believed that the new businesses are mainly involved in the tourism and energy industries.

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Cuba to Doll Out Farm Land And Tax It

September 29, 2017 Taxation in Cuba

Cuba taxing farmsHAVANA – Cuba hopes to wean itself off its reliance on foreign nations for food and money by granting more land to farmers, and then taxing them on it.

Last week the government of Cuba unveiled a series of new rules regarding land ownership and the gradual implementation of taxes on land ownership.

The new rules are aimed at simultaneously boosting the country’s ability to grow its own foods, while also increasing tax revenues.
Currently, the government doles out idle land to private citizens or entities, if the land will be used for food production.

Under the new rules, the land given to farmers will now be granted for a period of 20 years, instead of the previous period of 10 years, and, further, the lease on the land will be renewable upon expiry.

The amount of land granted for agri...

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Cuba Worries About Tax Evasion

August 7, 2017 Taxation in Cuba

CubaHAVANA – Tax evasion and smuggling have forced the government of Cuba to stop issuing new licenses for some businesses.

The government of Cuba is ceasing the issuance of business licenses until the problems associated with self-employment have been perfected.

Previously, Cubans who wanted to strike out and be self-employed could be issued a license by the government to run their own business.

However, the growing prosperity of some business owners displeased government officials.

Of particular ire to lawmakers were bed and breakfast owners who, in one night, could see incomes equivalent to the average weekly wage of a state-employed worker.

The government also noted that the self-employed may be neglecting to pay their full tax obligations, or even evading their taxes entirely.

In order t...

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Cuba Looks At Social Security Contributions

September 7, 2016 Taxation in Cuba

HAVANA – For the first time in 50 years government workers in Cuba will pay a social security contributions.

In a recent publication the Cuban national newspaper Granma revealed that government workers in the country will soon begin paying Special Contribution to Social Security (CESS).

The new social security contribution will be levied at a rate of 5 percent for any government workers earning in excess of CUC 500 per month (approx. 18.87).

It is expected that as many as 1.5 million employees will be effected by the new levy.

The CESS would be taken directly from the wages of the employee, instead of accumulating over time to be paid annually.

The funds raised from the CESS are intended to be used to cover the cost of the country’s social security system, which already supports 1...

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Cuba Offers Tax Cuts for Foreign Investment

April 1, 2014 Taxation in Cuba

HAVANA – Cuba is opening its doors to foreign businesses and investors with a slew of tax cuts meant to entice more enterprises to start working in the county.

Over the weekend the National Assembly of Cuba voted on and approved new legislation regarding the treatment of foreign investments coming into the country, significantly lowering the tax burden faced by overseas entrepreneurs operating or setting a business in Cuba.

The new rules are intended to cumulatively ease the process of establishing a business in Cuba, with a specific emphasis on increasing assurance for new investment applications, and decreasing overall tax obligations faced by these enterprises.

The most significant tax change being touted by the government is a 15 percent cut to the current 30 percent rate of profit t...

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