Cuban enterprises will receive tax benefits for increased exports

Cuban enterprises will receive tax benefits for increased exports

HAVANA, Sept. 18th Cuba approved a package of tax benefits to encourage exportable productions from both state and private Cuban and foreign enterprises that operate on the island.Resolution 222/2020 of the Ministry of Finance and Prices applies a discount to the tax on profits of state, cooperative and private enterprises, provided they show a percentage increase in sales of products and services for export in relation to the previous year.

The regulation will also favour individuals authorized to produce goods or provide services for export, which includes sales to users or concessionaires of the Mariel Special Development Zone, Cubadebate reported.

To access the benefits, “exports must be charged within the fiscal year, except for sales made in the months of November and December, and exceptionally in October, in contracts where a payment term of 90 days is agreed,” according to the regulation.

Another requirement to access the discount is to reduce or not deteriorate the import coefficient of exported products, with respect to the previous year, in the case of business or cooperative sector entities.

Compliance is evaluated on the basis of the financial statements of the business or cooperative sector entities, and the records of income and expenses of individuals, as appropriate, according to the source.

The established discounts are applied to taxpayers on their own initiative and the provisions will apply as of 2021, with the close of the fiscal year of the current year.

The resolution authorizes state enterprises and trading entities with 100% Cuban capital to pay their workers the amount resulting from the discount, according to the source.
(Oncuba)