Taxes - Accounting

Cuba

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Tax Rates | Accounting Rules

Tax Rates

Consumption taxes

Nature of the tax: Sales tax
Tax rate: There is no VAT in Cuba but there is a sales tax whose rate varies (from 2.5% to 25%) depending on the type of the product.
Reduced tax rate: Consumer goods serving as raw materials for industry or destined for export are exempted.
Other consumption taxes: Excise duties ("impuestos especiales") exist on alcohol and spirits, tobacco, fuel...

Corporate taxes

Tax rate

Company tax for the MEC (Mixed Economy Company) and the parties of a contract of international economic association, subjects to a special tax regime.	30% of the taxable net profits.
Company tax for companies with total foreign ownership.	35%
Company tax for companies with total foreign ownership, if the company is set up in a free-trade zone.	0% (exemptions)

Capital gains taxation: Capital gains are taxed as ordinary income.
Main allowable deductions and tax credit: Exemptions exist in certain cases: foreigners and franchise holders located in free-trade zones or industrial estates are exempt of tax on profits and labor force tax.
Other corporate taxes: There is a tax on the use of the labor force (Impuesto por la utilización de la fuerza de Trabajo), a stamp tax, a road tax, a land tax, a property transfer and inheritance tax, social security contributions.

Double taxation treaties

Countries with whom a double taxation treaty have been signed: See the list of countries having a double taxation agreement with Cuba
Withholding taxes: Dividends: 0%; Interest: 0%; Royalties: 0%.
Bilateral agreement: Cuba and Tunisia are bound by a double taxation treaty: no

Signed	Ratified	Enforced

Pour aller plus loin dans vos recherches nous vous proposons de connaître les taxes locales connaître les taxes locales qui s'appliquent à votre produit.

Sources of fiscal information

Tax Authorities: Official Customs website
Other domestic resources: PI Management Association informations on the tax system

Accounting Rules

Tax year: The fiscal year begins on January 1st and ends on December 31st of the same year.
Accounting standards: In January 2006, the Cuban financial information standards (Normas Cubanas de Informaciones Financieras, NCIF) were developed, the result is a mixture of international standards and standards specific to Cuba.
Accounting regulation bodies: Ministry of Finance and Prices
Accounting reports: The accounting structure includes:
- The balance sheet which must be published on the first day following the end of the registration period. It should contain the assets (long-term capital, fixed assets, current assets), liabilities (Sources of owned capital, Long-term bonds, Credits and other bonds);
- The profit and loss account : Financial result, Profit distribution, Expenses on the budget, Expenses on extra-budget expenditures and other funds, Movement of financial resources for investments in capital or other financial investments.
Publication requirements: The Cuban accounting system imposes on public and\or private companies the duty to release, annually, a certain amount of financial and accounting information. This duty is with regard to:
- A balance sheet
- A profit and loss account
- An incoming and outgoing financial flow summary
- A report on capital evolution.
Professional accountancy bodies: ANEC
Certification and auditing: The financial statements of any entity subject to taxation in Cuba must be audited annually by an auditor that is duly authorized by the Ministry of Finance.
Accounting news: Website on accounting system
Article detailing former and current Cuban accounting systems (Spanish only).