Deadline for tax payments in Cuba extended

The Ministry of Finance and Prices has taken this measure due to the prevailing energy crisis in the country and the damages caused by Hurricane Oscar.

Oficina de la ONAT en el habanero municipio Cerro (Imagen de referencia) © CiberCuba
ONAT Office in the Havana municipality of Cerro (Reference image)Photo © CiberCuba

The Ministry of Finance and Prices (MFP) of Cuba has extended the deadline for tax obligation payments due in October 2024 until the 31st of this month.

The Official Gazette of the Republic of Cuba No. 46 publishes Resolution No. 322 dated October 26, 2024, from the Minister of Finance and Prices, which extends the payment deadline for tax obligations of individuals and legal entities until October 31, 2024, for obligations due in October 2024, Cubadebate reported, citing the Ministry as the source.

The entity detailed that the extension of the payment period has been made considering "the exceptional situation that the country is experiencing, marked by the energy emergency and the passage of Hurricane Oscar through the eastern provinces, which have caused severe material damage and impacts on communication infrastructure and electrical networks throughout the national territory."

The regulation states that the National Office of Tax Administration (ONAT) is responsible for assisting taxpayers in accordance with its provisions, as well as for its implementation.

The Ministry of Finance and Prices urged taxpayers to use electronic payment channels due to the benefits they offer, including a 3 percent discount on the amount due.

The ONAT often encounters issues with an increasing number of clients who do not fulfill their tax obligations.

In the first four months of 2024, the ONAT detected tax evasion exceeding 800 million pesos.

Among the irregularities detected were the outdated, manipulated, or altered books, records, sub-ledgers, and other forms; the cancellation of accounts receivable without supporting documentation; and the failure to declare the contracted workforce.

On several occasions, the regime has taken measures against tax evaders.

In mid-July, the Cuban government announced that it would implement a "preventive embargo" as an auxiliary measure to ensure compliance with tax obligations. According to reports, the measure was designed to address tax evasion.

Vladimir Regueiro Ale, head of the Ministry of Finance and Prices, reported on the expansion of the scope of the preventive embargo while presenting a policy proposal to strengthen the Tax System during one of the sessions of the Economic Affairs Commission of the National Assembly of People's Power (ANPP).

The proposed policy includes measures such as expanding the scope of the preventive embargo to ensure the collection of debts; extending the definitions regarding the responsibilities of personal income tax withholders, as well as establishing a minimum amount as a requirement for processing refunds of undue or excess income.

In 2022, travel abroad and entry into the country were restricted for taxpayers with "significant" debts to the tax authorities, as long as they did not settle their debts with the State. To facilitate this, ONAT entered into an agreement with the Directorate of Identification, Immigration, and Foreign Affairs (DIIE) of the Ministry of the Interior, supported by Law No. 113 of the Tax System.

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