Cuba updates tax regime for individuals

 HAVANA, Cuba, Apr 3 (ACN) The Official Gazette of the Republic No. 20 Extraordinary published Resolution 42/2023 of the Ministry of Finance and Prices, which updates the tax treatment of personnel who receive income from bonuses.

This provision regulates the calculation and payment of the additional liquidation of the Personal Income Tax, through the presentation of the Affidavit for the income obtained in the fiscal year, of Cuban and foreign individuals, permanent residents in the national territory.

Included in this group are those hired through employing agencies or authorized entities that work in branches of foreign commercial firms, representative offices of banks, non-banking financial companies and other representations of foreign entities accredited in the country, including press agencies, diplomatic headquarters and representations of international organizations.

These subjects are obliged to pay the Personal Income Tax, for which they make a quarterly payment on account, applying a tax rate of 5% on the bonuses received in the corresponding quarter, according to the Resolution.

The regulation establishes that at the end of the fiscal year it is mandatory to file the corresponding Personal Income Tax Return, applying the progressive scale set forth in Article 26 of Law 113 "On the Tax System".

For the purposes of the additional liquidation corresponding to the fiscal year, up to 10 % will be deducted from the total income obtained for deductible expenses; the annual exempt minimum, for an amount of 39,120 Cuban pesos and the partial payments made quarterly on account of this Tax.

The deduction of the expense established, it clarifies, is applicable for the purposes of the Sworn Statement for fiscal year 2022.