Regulatory provisions that regulate non-state economic actors are updated. \ stacker news ~econ

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Regulatory provisions that regulate non-state economic actors are updated In this article: Economy, Government, Cuban government, Measurements, Ministry of Finance and Prices (MFP), Legal norms

August 19, 2024

They report on the creation of the National Institute of Non-State Economic Actors

Main tax and accounting modifications for non-state actors

As part of the projections to correct distortions and boost the economy, the updating of the legal provisions that regulate non-state economic actors is ratified, under the principle of not going backwards, but continuing to advance in their correct insertion in the economic and social development of the country and that they fulfill their role as complementary actors in the economy.

With this objective, the Official Gazette today publishes several decrees to update regulations for non-state economic actors. Among them are the Decree Laws on micro, small and medium-sized businesses, non-agricultural cooperatives, and the exercise of self-employment.

As well as those referring to contraventions in the exercise of self-employment, micro, small and medium-sized companies and non-agricultural cooperatives; the special social security regime for these actors, and the tax system.

Resolutions are also published referring to the procedures for the creation, merger, division and extinction, aspects of economic contracting and bidding procedure in the relations of state entities with non-state economic actors, and the rules for taxation and price treatment. and rates for self-employed workers.

These resolutions come into force 30 days after their publication in the Official Gazette.

The main tax adjustments are in correspondence with the updating of the tax system, the growth in the income levels of non-state economic actors and self-employed workers, as the Tax System is the main source of income from the State Budget.

The adjustments also aim to consolidate the application of taxes under the principles of generality and tax equity, as well as enhance the capture of budgetary income in correspondence with the economic capacity of each taxpayer.

These tax adjustments render void decree laws 354, of February 23, 2018 and 49, of August 6, 2021, and articles 60, 61, 62, 63, 64 and 65 and the Third Special Provision of the aforementioned Law 113 of 2012.

The elimination of the simplified tax regime for the payment of taxes is ratified, which generalizes a single general tax regime applicable to all non-state economic actors (in force since January 1, 2024).
More than two years after the process of creating MSMEs began, they have demonstrated contributory capacity and it is necessary to boost income to the State Budget, thus eliminating the benefit that the partners had, exempt from paying income tax. personal dividends obtained in their first year of operations.

In the case of self-employed workers, the exemption from payments for the first three months of starting operations is eliminated.

Tax incentives must be temporary to stimulate an activity or sectors of the economy.

The accounting of operations is updated in correspondence with the annual income obtained by the self-employed worker.
In the exercise of his activity, the self-employed worker who annually obtains income of more than five hundred thousand pesos (500,000.00 CUP) is obliged to keep accounting of his operations, for tax purposes, based on the Cuban Financial Reporting Standards.
As part of the update of the tax system, the accounting of self-employed workers is simplified, and those who obtain annual income of less than five hundred thousand pesos (500,000.00 CUP) are only required to keep the Income and Expense Control Registry and the supporting documentation of operations.
The payment of the Tax for the transfer of assets and inheritances will be made at the time of formalizing the act of transfer through the notarial deed and not in the Property Registry.
It is based on the high level of non-payment of these taxes under the rules of within a period of 30 days once the notarial deed of the act of sale or donation has been formalized, fundamentally of the homes, as there is no limitation on the use and enjoyment of the property, even when the act of transfer is not registered in the Property Registry.
Five percent (5%) is recognized as the tax rate for the payment of the Tax on the Use of the Labor Force.
The amount equivalent to the minimum wage established by the MTSS is recognized for the calculation of the Tax on the Use of the Labor Force, as the minimum remuneration paid to each worker.

In the case of the self-employed worker who carries out commercial fishing activity, the form of taxation is modified:

• is taxed by the General Regime.

• expands the scope of activity by authorizing the free marketing of products.

• is required to open and operate a tax bank account, like other natural person taxpayers.

• They are exempt from the presentation and payment of the Personal Income Tax Affidavit.

To avoid legislative dispersion, resolutions 345, 346, 347, 382 of 2021, 246 of 2023, all of the Ministry of Finance and Prices, are repealed.