Cuba focuses on updating its tax system

HAVANA, Cuba, Aug 30 (ACN) In order to reduce the fiscal deficit for the macroeconomic stabilization of the country, Vladimir Regueiro Ale, Cuban Minister of Finance and Prices (MFP), reported on Decree Law 93, amending Law 113 of the Tax System, which will enter into force on September 18.

The Minister, while appearing on the television program Mesa Redonda, stated that the text modifies six articles of the mentioned norm and ratifies six others related to the delimitation of tax responsibilities, the formation of prices and the relations between economic actors.

Regueiro Ale pointed out that such measures are complemented with three ministerial resolutions of the MFP regarding taxation rules, accounting for self-employed workers and the adaptation of this policy for commercial fishermen.

Among the main modifications, he emphasized that the exception to the payment of partners of micro, small and medium-sized companies (MSMEs) for the dividends of their participation in the first year of operations is eliminated, as well as the payment of taxes in the month of approval and the first three months of activity of newly created businesses.

He clarified that in these cases tax adjustments are applied when the economic actors do not generate income at the beginning.

Ale pointed out that there is also an adjustment in the qualification and regime of self-employed workers, where the cost of fulfilling these responsibilities is eliminated, which are transferred to the employer, who must also maintain the payment of social security.

Regarding Ministerial Resolution 272, Regueiro Ale commented that it updates the accounting of operations in correspondence with the annual income obtained, which is made more flexible in the case of those that are less than 500,000 pesos.

He emphasized that for workers involved in commercial fishing, taxes will be reduced by 5% when their catches end up being taxed at the national industry's requirements and, on the contrary, when profits are obtained from direct sales, the tax will be 10% higher.

These strategies are intended not only for a more rigorous fiscal control and to increase revenues to the budget, but also to raise the level of involvement of local governments in the management of their own budgets and bring closer to that ideal of justice, solidarity and commitment in the tax system, Cuban minister added.

In his speech, Regueiro Ale also referred to the tax control activity, where a significant level of evasion and under-declaration has been identified, which has led to temporary or total closures of establishments and withdrawal of licenses, among other sanctions.

At the end of July, the contributions of the economic actors totaled 15% of total revenues and 21% of reported tax revenues, according to the head of the MFP.