Cuba’s Private Sector Gets Tax ReliefMay 27, 2011 | | Print |
By Circles Robinson
HAVANA TIMES, May 27 — One of the complaints levied about the rules for starting a small business in Cuba has been the immediate license fee and tax burden on the entrepreneur. Now the Council of Ministers has announced short term relief for small businesses.
To make going into business a little more owner-friendly, the government will not charge payroll taxes for up to five workers during the rest of 2011.
Limits on seating at “paladar” private restaurants – a popular alternative for those with the funds to open one – were also increased from 20 to 50, a significant jump.
Another measure approved suspends taxes from the third to sixth months when private renters or taxi drivers have their homes or cars under repair.
The retroactive payment of Social Security contributions for people already self-employed before October 2010 was extended from two to ten years.
Likewise, women over 60, and men over 65, will not be obligated to join the special social security program for the self employed.
Personal income tax on transportation providers using animal traction (horse drawn carts) were given a 40% deductable consideration for expenses on their annual income (twice what was originally posted).
Those renting rooms or apartments to Cubans or tourists also saw the minimum license fee charged drop from 200 to 150 pesos a month in both currencies (In hard CUC currency when serving foreigners and in regular pesos when renting to Cubans).