| Cuba Income Tax Cuba income tax rates are progressive, between 5% - 50%.
Net Income (Cuban Pesos - CUP) / Tax Rate %
CUP 0 - 3000.00 5%
CUP 3000.00 - 6000.00 10%
CUP 6000.00 - 12000.00 15%
CUP 12000.00 - 18000.00 20%
CUP 18000.00 - 24000.00 25%
CUP 24000.00 - 36000.00 30%
CUP 36000.00 - 48000.00 35%
CUP 48000.00 - 60000.00 40%
Over CUP 60000.00 50%
Tax Year: Cuba tax year is the calendar year.
Cuba Corporate Tax Tax rate for resident companies: The SEM (Society of mixed economy) and the parties of a contract of international economic association are subjected to a special regime of levy, The tax is perceived at the rate of 30% of the taxable net profits, Concerning companies with totally foreign capital, the corporate tax rate is 35%, The executive committee can exempt the taxpayers from all or any of the net profit tax reinvested in the country, Similar exemptions can be obtained in case of implanting in a free-trade zone, A tax on salaries of 11% is added to the corporate tax and the Social Security contribution at the rate of 14%
System governing groups of companies and dividends paid by subsidiaries to their parent companies: No payment at the source on dividends in Cuba
Tax rate on branches: The corporate tax is levied on branches in the same way as any other companies in Cuba
Capital gains taxation: The taxation rate depends on the company's legal form. For companies that have complete foreign ownership, the rate is 35% whereas for companies that are of mixed economies and those of international economic association contracts the rate is at 30%.
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 also a tax on the use of the labor force (Impuesto por la utilización de la fuerza de Trabajo): 25% (of the total value of the salary). In the case where the company is set up in a trade-free zone or an industrial estate, the investors are completely exempt of this tax.
Cuba Sales TaxThere is no Value Added Tax (VAT) in Cuba but there is a sales tax whose rate varies from 2.5% to 25% depending on the type of the product.
The taxed goods are those that are imported, partly produced in Cuba or goods that are bought for resale and are destined for consumption.
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