Tax
Ley 113/2012 tax system, applied progressively as the private sector grew
Ley 113/2012 del Sistema Tributario is the framework statute, providing for profits tax, personal income tax, sales and services taxes, a labour-force use tax and social security contributions, administered by the Oficina Nacional de Administración Tributaria. Many taxes were phased in gradually, and annual budget laws suspend or adjust particular charges, so the operative rate often differs from the rate in the code. MIPYMES benefit from an initial exemption from profits tax in their first year.
Key rules
- Jurisdiction — National; ONAT under the Ministerio de Finanzas y Precios
- Deadline — Personal income tax declaration: filed by 30 April for the preceding year
- Deadline — MIPYME profits tax: exemption in the first year of operation, then payable
- Deadline — Monthly instalments: paid by self-employed workers during the year
Governing law
- Ley 113/2012 del Sistema Tributario
- Ley de Presupuestoannual, adjusting rates and exemptions
- Resoluciones of the Ministerio de Finanzas y Precios
In practice
Reading Ley 113/2012 alone gives a misleading picture, because the annual budget law routinely suspends or reduces specific taxes, and the applicable charge for a given year must be traced through those instruments and ONAT resolutions. The tax on the use of the labour force is a distinctive Cuban charge levied on the employer by reference to the wage bill, and it materially affects the cost of employing staff.