Cuba publishes resolutions to complete the legal framework for Local Development in the country

HAVANA, Cuba, May 14 (ACN) The Official Gazette publishes three regulations that complete the legal framework for Local Development in Cuba.

Resolution 147 of the Cuban Central Bank issues the banking procedure for managing the financing of Local Development projects, according to their classification, holders and sources of financing.

It establishes that banks open current accounts in Cuban Pesos (CUP) according to the title of the project, approved by Agreement of the Municipal Administration Council (CAM) or the Provincial Government, as appropriate.

In case it receives income directly from abroad, with prior approval of the Ministry of Economy and Planning, its holder requests the bank to open a cash account, CL, to the effect that 80 % of the foreign currency generated is credited.

It emphasizes that the current accounts of the Local Development projects may be operated by state entities, self-employed workers, agricultural and non-agricultural cooperatives, mass and social organizations, institutions and legally recognized associative forms and other natural or juridical persons that are legally recognized.

Resolution 29 of the Ministry of Economy and Planning, on the other hand, approves the general bases for the organization of the working system for the strategic management of territorial development, as well as the management of local development financing.

It takes into account the results expected with the working system, principles, premises for its implementation, a methodological guide for the design and management of the Municipal and Provincial Development Strategy, as well as for the management of Local Development financing.

A resolution of the Ministry of Finance and Prices, Resolution 114 of 2021, establishes the Procedure for the budgetary financing of territorial development and the tax, financial, price and accounting treatment applicable to local development projects.

The regulation states that the sources of budgetary resources to support and guarantee a sustainable economic and social development in the municipalities are: 50% of the collection of the Territorial Contribution, the percentage of overcompliance of the assigned revenues that contribute to the increase of the surplus or decrease of the planned deficit at the closing of the fiscal year, approved to each territory, in accordance with the regulations of this Ministry.

It adds that these initiatives are subject to taxes on retail sales or services to the population, as appropriate, which they calculate and pay by applying a tax rate of 10%, as well as the Tax on Profits, which they calculate and pay by applying a tax rate of 15%.

In 2020, the Cuban government approved a Policy for Local Development, which is also based on the leadership of municipal and provincial governments in the preparation and management of their development strategies, in which they must take advantage of the resources and potential they have.