Category Taxation in Cuba

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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Cuba Slaps Excise Duty on Private Imports

September 5, 2012 Taxation in Cuba

Cuba import taxHAVANA – Cuba has imposed a new tax on goods brought into the country by individuals, but local businesses are saying that the change will only damage the economy and stifle small businesses.

From September 3rd 2012 all travelers coming into Cuba will face excise duties of CUP 10 per kilogram of commercial goods that they bring into the country.

The new tax will also apply to all foreign tourist visiting Cuba and also to Cuban nationals who have left the country more than once in a 12 months period.

Foreign tourists coming into Cuba are allowed to bring in 30 kilograms of items for resale without facing taxes, but will be required to pay the new excise duty on all goods above the weight limit.

Cuban nationals are granted a once-a-year pass to bring in goods and be charged a reduced rate of...

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Cuba To Hike Tax on Foreign Goods

July 17, 2012 Taxation in Cuba

Cuba To Hike Tax on Foreign GoodsHAVANA – Cuba will soon implement a new tax on imported goods, but the move is expected to have a significant negative effect on local businesses.

On July 17th the national radio station of Cuba Radio Rebelde revealed that the government plans to introduce a new import tax on goods brought into the country by individual taxpayers.

From September 2012 all Cuban nationals who leave the country more than once a year will be required to pay an import tax of at least CUP 10 per kilogram of imported goods. Tourists to Cuba will also be liable to pay the tax on commercial goods, which will be imposed upon their first arrival.

Currently, the import taxes on goods brought into the country are set at CUP 0.50 per kilogram, with pre-set duties for selected items, such as kitchenware and televisions.

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