Tax in Cuba

Who is the tax authority?

The Oficina Nacional de Administración Tributaria (ONAT) administers Cuba's tax system. ONAT sits under the Ministerio de Finanzas y Precios.

The legal foundation is Ley 113 of 2012 (Tax System Law, as amended) plus successive Resoluciones. The 2019 constitutional reforms expanded formal recognition of private-sector activity (MIPYME — Micro, Small, and Medium enterprises), reshaping how self-employed income is taxed.

Cuba is a civil-law jurisdiction with a socialist legal framework built on the post-Spanish colonial foundation, substantially revised by the 2019 constitution.

What is the tax year and when are returns due?

Cuba's tax year is the calendar year (1 January to 31 December). Individual annual returns are due 30 April for the prior year. Corporate annual returns are due 31 March.

ITS-registered sellers file monthly returns. The Mariel Special Development Zone has its own filing calendar for qualifying activities.

Who counts as a Cuban tax resident?

A person is a Cuban tax resident if physically present 183 days or more in Cuba in the tax year. Residents pay tax on worldwide income.

Non-residents pay tax only on Cuban-source income. The state-employment framework applies distinct rules for Cuban nationals working within the state-enterprise wage system.

The 2019 constitutional reforms expanded private-sector recognition. Self-employed individuals (cuentapropistas) and MIPYME owners are subject to the progressive personal income tax framework under Ley 113.

What are the personal income tax rates?

Cuba applies a five-bracket progressive personal income tax on self-employed (cuentapropistas) and MIPYME private-sector income above the threshold. State-employed nationals face minimal PIT under the state-wage system.

State-employed Cuban nationals inside the state wage framework face a separate, often minimal, withholding regime. The 50% top rate applies only to the highest private-sector earners.

How does corporate tax work?

Cuba's corporate income tax (CIT) rate is 35% on state enterprises and mixed-capital enterprises involving foreign investment. The rate reflects Cuba's predominantly state-directed economy.

Withholding on dividends paid to non-residents is 4% under domestic law. Treaty residents may access reduced rates under Cuba's ~13 bilateral agreements. Cuba has not transposed OECD Pillar Two and is not an OECD member.

Loss carry-forward rules exist under Ley 113 but are subject to regulatory modification; verify current year's Resoluciones before planning.

Indirect tax: ITS instead of VAT

Cuba does not operate a traditional value-added tax (VAT). The state-administered price framework historically replaced a consumption-tax system.

The ITS framework is governed by Ley 113 and Resoluciones issued by ONAT. Monthly ITS returns are filed by registered sellers.

The 2021 monetary unification

Cuba operated a dual-currency system for decades: the Cuban Peso (CUP) for domestic use and the Convertible Peso (CUC) for tourism and foreign-currency transactions. The 2021 monetary unification ended that split.

The currency framework remains under pressure. Practitioners advising on Cuban operations should verify current official exchange rates with the Banco Central de Cuba before any valuations.

Cryptoassets and the BCC framework

The Banco Central de Cuba's Resolución 215 of 2021 created a regulatory framework for cryptoasset use. The context was specific: US sanctions restrict Cuba's access to the international financial system, and remittance channels were increasingly constrained.

US persons engaging with Cuban cryptoasset activity remain subject to OFAC Cuba sanctions. Non-US practitioners should still conduct sanctions-screening on counterparties before advising on Cuban crypto structures.

US embargo and OFAC sanctions

The US trade embargo against Cuba, in place since 1962, is the dominant operational constraint for any cross-border tax engagement involving Cuban entities.

Sanctions screening is a prerequisite step before any cross-border advisory engagement involving Cuba. Cuba is not a CRS adopter (as of mid-2026), which adds information-exchange opacity.

What is the treaty network?

Cuba has approximately 13 active bilateral tax treaties. Partners include Spain, Italy, Russia, China, Vietnam, Venezuela, Mexico, and Portugal. No US–Cuba DTA exists or can exist under the current embargo.

Cuba has not signed the OECD Multilateral Instrument (MLI). Cuba is not an OECD member and has not adopted Pillar Two. Cuba is not a CRS adopter.

Where does Cuba sit in the LATAM cohort?

Cuba sits in the LATAM socialist / sanctioned economy cohort alongside Venezuela and Nicaragua. The wider LATAM region spans five distinct tax archetypes:

Common pitfalls

Engagements involving Cuba carry a distinctive set of compliance risks not present in other LATAM jurisdictions.

When should you talk to a Cuban tax pro?

Cuba's tax environment demands professional guidance earlier than most jurisdictions. Consider engaging a practitioner when:

• An OFAC license situation is involved (any US-connected party — mandatory, not discretionary)
• Cross-border investment into Cuba is under consideration (sanctions screening + treaty mapping)
• You are forming or already operating a MIPYME or cuentapropista structure
• CUP valuation uncertainty affects profit calculations for foreign-currency activities
• Qualifying for Mariel Special Development Zone reduced rates
• ONAT has issued an assessment, audit notice, or query

You can find vetted Cuba practitioners through the directory below.

This page is general information. It is not personal guidance for your situation. Tax rules and Resoluciones change. Always verify current figures with ONAT or a licensed practitioner before filing.