New regulations for self-employment in Cuba

The Cuban government announced Monday in its official press channels the implementation of "20 legal standards grouped into several decrees, as well as 14 complementary resolutions" to regulate the exercise of independent work in the island

Protected by the law No. 113 of the tax system and born to reduce "the differences related, basically, to the use of raw materials of illicit origin, as well as the non-compliance with tax obligations and under-reporting of income "- according to information published in the official Granma-tax adjustments were introduced and will be recorded in the Official Gazette Extraordinary No. 35. of this Tuesday, July 10. [19659002] Although the first Deputy Minister of Labor and Social Security (MTSS), Marta Elena Feitódo Cabrera, acknowledged that self-employment had an impact on "the reorganization of work and the reductio n inflated models in the state sector and, in turn, gradually helped to release the state of some productive activities and non-strategic services for the country's development, "has increased the 39, offers, improved the quality of services, and payment of taxes; the discrepancies that led to the [20179003] temporary suspension in 2017 of the new authorizations "of 27 approved activities" and led to the new regulations for the exercise of these activities [19659002] Among the major sections and points included in the new regulations include:

Tax plans, monthly fees and deductible expenses for activities that are grouped together

"Of the 123 activities that have were approved after the amalgamation, 52 will contribute for the general scheme and 71 for the simplified, which is the monthly payment of a consolidated quota, "Granma informed.

The minimum cost in capital increases in 41 integrated activities and in the rest of the country to 20 of them. "These increases range from five to 360 pesos, although in the last range, only 2% of the TCPs are located."

At the same time, "the minimum quotas for 39 activities and only 22 in Havana are diminished". [19659002] In the case of taxpayers who leave and join "the same activity or similar activity" within a period of less than 24 months, "they will be badessed, according to the manager, the amount they had before the cancellation "

Workforce Utilization Tax

According to the Chief Financial Officer of the CFP, the main novelty in this area is the elimination of" the exemption of the payment of taxes for the hiring of five workers and, in turn, the minimum tax base is adjusted for the payment of this tax, whose tax rate continues to be 5%. "

Implementation of the tax bank account

" It will allow transparency the financial management of the TCP and, initially, it will be mandatory for those who provide gastronomic services, constructive, rental housing, rooms and spaces, as well as transportation of pbadengers in motor vehicles (from 4 to 14 seats) in Havana. "

A minimum balance is established, which must coincide with" three monthly installments of the taxpayer. "For this account," all financial transactions related to the activity must be processed. "

30 days will be available after being "notified by the National Bureau of Tax Administration (ONAT)" to open the account and 90 days to "cover

Simplified Regime for Telecommunications Officers

For those who" earn income monthly up to 2,500 pesos, the fixed monthly payment of 20 pesos will be maintained, which can be increased by municipal governments up to 75 pesos "

When the monthly income will exceed 2,500 pesos, the quotas will be applied in accordance with the following table

Restructuring of current activities

As indicated in the note published in the official media, none of the previously authorized activities However, the three new activities have been created: "bar and leisure service, baker baker and owner of the means of transport". The above is a direct result of irregularities detected in the past from establishments designed as restaurants or cafeterias that have also served as clubs or recreation centers.

This new activity, which "emerges from the activity of gastronomic services in restaurants", will allow, according to the First Deputy Minister of Labor and Social Security (MTSS), "to offer Alcoholic and non-alcoholic beverages in the natural state or in badtails, as well as light foods, "in addition to having" recorded music, presentations of professional artists ", according to standards and procedures established by the Ministry of Culture.

Temporary suspension of the exercise of activity

The new regulation provides, as planned a few days ago the suspension of the Year in such circumstances as the following:

– May grant a period of six months to motor sport instructors, carriers and lessors of means of transportation to repair the vehicle.

– Perform conservation and remodeling of the property: tenants of housing, rooms and spaces; badistants for the education and care of children, as well as those who offer bar and leisure and gastronomic services in the restaurant or cafeteria.

– Work as a lay judge

Similarly, the transfer of fulfillment is considered homeowner's duties towards one of his employees if he is to "absentee" for a trip to go or for a prolonged illness from him or members of his family ". This measure responds to an earlier claim by the PTC that they had to close their premises or suspend activity, for example, when they went abroad.

Authorizations to Exercise Only One of Approved Activities

Although they recognize that this may seem like little flexible responses, as they explain, respond to this "before you can to obtain several licenses. "

The 9,657 TCP – 1.6% of the 591,456 in the country – who have "more than one authorization in activities that are not integrated," feature "90 days after entry into force of the regulation, to go before the entity that issued the authorization, in order to make the corresponding changes and choose which license will continue and which will be canceled. "

Only one of the following activities will be allowed "in the same legal address": gastronomic service in a restaurant; gastronomic service in the cafeteria and bar service and recreation

Licenses that will no longer be granted

According to the official Granma "the decision not to grant new authorizations for the following activities is ratified; wholesaler and retailer of agricultural products; operator of recreational equipment (for rustic equipment); merchant or vendor of agricultural products in ambulatory, salesman of sales records "

Simplification of control mechanisms

" The fact that different organizations Inspection visit the same places for short periods is counterproductive and should not be allowed.Thus, each territory must organize, in detail, its control "admits the deputy minister.In this sense, it is expected to to correct the legislative dispersion that existed.

The sanctions will correspond to the extent of the violation and will include "the application of fines up to & # 39; to the definitive cancellation of the license ".

Pbadenger Transportation [19659006] The novelties include "the granting of the Transportation Operating License (LOT) for ancillary and related services, which will be granted only once for free . In addition, the municipal, provincial and national extension of this license is reinstated (today all are national in scope). "

It will be essential to have a driver's license for the means of transport in question and more than three years of experience motor vehicle driver if" bus services, trucks and of trucks "are provided.

Experience in the Capital: Public Pbadenger Transportation Service

" An experience of more than 6,000 people has been approved license holders, who offer services in the automobile , jeep, panels and minibuses with a capacity between four and 14 seats "consisting" of ordering the pbadenger transport service in a system of 26 piqueras with 23 badociated routes, which was organized by the Board of Directors of the capital city. "

To participate, it will be essential to open bank accounts badociated with a magnetic card, for the execution of payment transactions with state entities."

An obligation for annual consumption minimum fuel acquired by magnetic card will be established.

Those who will benefit from the experience will have the following sales prices per liter: CUP Diesel-2, CUP Gasoline-10 CUP, CUP Regular Gasoline-13 and CUP Gasoline-16 CUP

Those Who Do not Participate not to this pilot experience in the capital will have the same minimum requirements of fuel consumption, acquired at the price of the minoriastas according to the type

Entry into force

The 20 legal norms regrouped in several decrees, as well as 14 complementary resolutions for regulate the private sector on the island will enter into force 150 days after its publication in the Official Journal.

At the same time "the handing over of authorizations will be relaunched for the 27 activities that are currently limited"

. The new regulation, as it has been advanced, "will be available in digital format on the website of the Official Gazette and will be gradually available for sale, in print, from May 1st. 39th of August. "