Cuba announces income tax on Cubans hired abroad

HAVANA, Cuba, Dec 16 (ACN) Law 113 on the Tax System, which entered into force in 2013, established, through its Article 28, that Cuban and foreign individuals with permanent residence in the national territory, for the income they receive from individual work contracts abroad, shall pay over the total of the same four percent (4%), without considering any deduction, except for the payments of the commissions they have made to Cuban entities through which they were hired.

The Ministry of Finance and Prices (MFP) specified on its web site that for the purposes of this tax, the work carried out under a collaboration agreement, service export contract or other of a similar nature is not considered as an individual contract abroad.

In the clarification, the MFP states that the amendment that Decree Law 21 incorporates into the Tax Law is related to the expression in Cuban pesos of the minimum value to be paid for this tax, which was previously regulated at twenty convertible pesos (20.00 CUC) per month, and is now defined at 500 Cuban pesos (500.00 CUP).

According to the note, in accordance with the principle of gradual implementation of the Tax System, which the law itself endorses, to date this tax has not been applied, on which work is being done to create technical, organizational and management conditions for its gradual application, regarding which, when the time comes, the appropriate explanations will be offered to the population.

In the year 2021 this tax will be applied to the athletes who are permanent residents in Cuba, hired abroad, in accordance with the provisions of this year's Budget Law.
In the information published, they ratified that, as part of the Monetary Order, the implementation of this tax is not foreseen in general.