The National Institute of State Business Assets (INAEE) published this Wednesday the , a regulation that sets new rules for the distribution of profits in the Cuban state business system, including payments to workers, the creation of reserves, and the management of funds within business groups.
The resolution, issued on July 24 and published in the , will come into effect on January 1, 2027, and is part of the regulatory package associated with Decree-Law 120 "On the Cuban State Business System."
Resolution 2/2026 applies to state-owned enterprises and subsidiaries, commercial companies—including state-owned micro, small, and medium-sized enterprises (mipymes)—and business groups.
One of the most significant aspects for workers is the possibility of receiving advances on profits throughout the year, corresponding to the results of the first, second, and third quarters.
The amount can reach up to 50% of the profit available for that purpose, but it is not calculated directly on all the earnings obtained by the company. First, taxes, the contribution for the return on state investment, or dividends and other concepts, such as deferred expenses, income from surplus assets, and losses or discrepancies under investigation must be deducted.
Payments are made in the following quarter and are also subject to the company's available liquidity.
The resolution also establishes that these advances are subject to the Personal Income Tax and the Special Contribution to Social Security, although they are not considered salaries. Payment is made exclusively in Cuban pesos.
In order to distribute profits in advance, companies must meet several requirements, including not having any overdue tax debts.
The standard also introduces nuances for entities rated as "Deficient" or "Poor" in audits. Employees who have not been identified as responsible for the deficiencies can access the distribution, except when the poor evaluation is due to accounting manipulations that distort the actual results of the company.
Advances are not final either. If it is later determined that a company paid its workers an amount greater than what was actually due, it must refund the excess and will not be able to continue making those payments until it generates sufficient profits again.
At the end of the fiscal year, the reserve allocated for distributing profits among the workers is finally determined.
In addition to those payments, companies will be able to create voluntary reserves using retained earnings after fulfilling their tax and financial obligations. The establishment and use of these reserves must be approved by the management board "for the benefit of the workers, the company, and society, in agreement with the labor organization, and after the participation of the workers."
These reserves can be used to pay off debts, finance investments, training and postgraduate studies, science and innovation projects, labor incentives, and even to purchase, build, or renovate housing with the aim of stabilizing the workforce. They can also fund the creation of subsidiaries, state or mixed micro, small, and medium-sized enterprises, and other financial investments.
However, companies that have accumulated losses from previous years must allocate part of their retained earnings to cover these losses before freely using those resources.
The resolution also grants the directors of business entities the authority to pre-use up to 20% of the retained earnings pending distribution as voluntary reserves, before the conclusion of the approval process. This possibility does not include the resources intended for distributing profits among the workers.
Another mechanism planned is the Common Financing Fund, which business groups can create through a centralized treasury. Its resources may be used to finance investments, liquidity needs, credits, and other operations among the member companies.
The fund can even provide short-term financing, establish guarantees, make financial investments, or contribute resources to create companies and acquire shares or stakes, becoming an internal financial mechanism for business groups.
The regulation also governs the contributions that companies must make to the State from the returns on state investment or through dividends. The amount is determined annually in the directives of the Economic Plan and the State Budget, and is subsequently distributed among the relevant entities.
State banks are subject to a specific treatment: they must contribute 30% of their profit after taxes, although the Central Bank of Cuba can approve a different percentage.
During 2027, in addition, the economic entities that are shareholders of commercial companies and mixed enterprises must contribute 50% of the dividends received to the State Budget as a preliminary payment, within ten working days after their receipt. Shareholders of state-owned micro, small, and medium enterprises (mipymes) and shareholders of new commercial companies established after the entry into force of Decree-Law 120 are exempt from this requirement.
The resolution is part of the reorganization of the state business system initiated after the creation of the INAEE through the , an entity subordinated to the Council of Ministers responsible for leading the transformation of the state business sector.
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