At a press conference, Vladimir Regueiro, the MFP’s Director of Fiscal Policy, explained that the adjustments remain within the limits of the tax approved for this sector (between 25 and 35 percent), and are part of the new regulations that will come into force on December 7 and published in the Extraordinary Official Gazette No. 35.
According to the specialist, of the recently updated list of 123 kinds of licenses, 52 will be taxed under the General System and the remaining 71 will be taxed under the Simplified System.
He added that of the 28 activities arising from the integration of others, 14 will have to make a monthly tax payment and an Affidavit (DJ) at the end of the year, while the other half will be governed by the simplest modality, with consolidated fees.
The three new activities allowed: bar and recreation, baker and renting of means of transport will come under the General Regime of taxation, as well as six already existing: the scrubber-greaser of automotive equipment, motoring instructor, locksmith and bookkeeper.
In such cases, taxpayers will not be required to submit their DJ until 2020, on the income earned in the previous year’s fiscal year.
The Director of Fiscal Policy of the MFP explained that taking into account that in Havana there are higher levels of returns, the minimum quotas were increased to 41 activities, while in the rest of the country the increase only includes 20.
According to Regueiro, the increase will be applied to some 25,000 taxpayers (four percent of the total) and in 63 percent of the cases are moderate increases from five to 40 pesos, and only two percent are between 100 and 300 pesos.
A study of the activities also allowed for a reduction in the minimum quotas to 39 kinds of licenses; in Havana there will only be 22, said the specialist, who warned that such changes will benefit those who start out in these modalities.
He clarified that the advantage exempts those who already have licenses or who cancel their licenses and reincorporate in a period of less than 24 months.
Regueiro said that even if the owner increases the tax rate, his employees will keep their current contribution, except for new income.
He informed that the heads of businesses will have to pay a tax on the use of all the hired labor force, with a tax rate of five percent, which will be applied progressively according to the number of employees and corresponding to the average monthly salary of the province where they operate.
Another novelty is the requirement to set up tax bank accounts for those who provide gastronomic services in cafés, paladares (private restaurants) and bars, renting homes, rooms and spaces and transport in the capital.
The adaptations also give continuity to what has been endorsed in the country’s socioeconomic guidelines to avoid the concentration of wealth and property in non-state forms, as well as to encourage the orderly development of this activity, said the MFP’s director of fiscal policy.
Since the reopening of self-employment in 2010, there has been an increase in revenue from this concept, which already represents five percent of the income expected to be collected this year by the State Budget.