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Cuban MSMEs will have to declare taxes digitally

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Cuban MSMEs will have to declare taxes digitally

The Ministry of Finance and Prices in Cuba has made it mandatory for all micro, small, and medium-sized businesses (MSMEs) to declare taxes in exclusively digital format before the National Tax Administration Office (ONAT). This decision, outlined in Resolution 8 of 2024, aims to streamline tax procedures and improve tax control mechanisms.

Vladimir Regueiro Ale, Minister of Finance and Prices, explained that the decision takes into account the advancement of the computerization process in Cuban society. Although the obligation to file tax returns annually was established by Law 113 of the Tax System in 2012, the new resolution now mandates the digitization of tax returns.

For MSMEs in Cuba, the profit tax stands at 35%. Calculating this tax involves determining the gross income, subtracting operating expenses, and applying previous tax losses. Additional adjustments are made to arrive at the tax base, on which the tax rate is applied. Tax credits and deductions for investments or research and development can help reduce the tax payable.

However, not all MSMEs are equipped to adapt to these new regulations, as many lack the necessary computerization and telecommunications technologies. Additionally, they must also pay other taxes such as sales or services tax, Tax on the Use of the Workforce, Social Security contribution, and Territorial Contribution for Local Development.

The new digital tax declaration requirement presents a challenge for MSMEs, especially those lacking the technological infrastructure. Nevertheless, the regulation aims to modernize tax procedures and improve compliance among businesses in Cuba.

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