Summary
For the improvement of the Cuban economic management model, it is required that the Tax System advance gradually and comprehensively, increasing its efficiency and effectiveness as a mechanism for the redistribution of income taking into account the complex financial landscape at the international level and the effects that internally, it presents the Cuban economy. It is necessary that the population is aware that the payment of taxes is a way to defray the social expenses incurred by the State, and that the modifications established in the new Tax Law contribute to the achievement of this objective.
Introduction
The economic situation in Cuba in recent decades has been largely influenced by the effect of external agents such as the fall of the socialist camp, and the intensification of the economic and commercial blockade imposed by the United States government in the context of the world economic crisis of recent times. Such reality has forced the State to take positions that allow it to maintain, at a very high cost for a third world country, free health, education, sports and cultural training services, as well as Social Security and Assistance, among other social expenses. necessary. In order to fulfill these functions, large amounts of financial resources are needed to support these activities.
The tax reform that occurred in 1994, when Law 73 of the Tax System was approved by the National Assembly of People's Power, responded to the financial consolidation that, among other measures taken by the country's top leadership, contributed to stabilizing the balance of internal finances. Given the current economic, political and social conditions that characterize the environment, updating and improving the Tax System will favor economic development, guaranteeing sufficient levels of income to support social spending decisions, keeping the deficit in sustainable ranges for the economy., and to promote the tax culture and social responsibility of the population and entities of the country in the payment of taxes.
Development
The application of the payment of taxes as part of the fiscal policies of the States is not exclusive to Cuba, but is used throughout the world, and constitutes the main source of financial resources available to the State to assume the expenses that guarantee its sustainability. The taxes are made up of Taxes, Fees and Contributions.
When a State, as is the case of the Cuban, tries to maximize the well-being of society, making use of fiscal instruments such as taxes, it needs that a high degree of tax awareness and culture be manifested among the individuals that comprise it. It allows to understand the importance of the payment of the same, as well as the discipline in the fulfillment of its obligations.
By Tax System, it is understood the set of basic relationships and institutions of a legal and economic nature linked to the State program in attracting financial resources through the application of its coercive power, subject to the achievement of certain purposes or objectives. Among its essential components we find the principles of taxation and tax policy; the tax structure; the substantive and adjective legal bodies and the set of institutional means called as tax administration, all of them closely related
The essential objectives that are pursued with the application of a Tax System are:
- Guarantee the collection of financial resources that allow financing social expenditures and at the same time reduce the fiscal deficit or keep them at sustainable levels for the country's economy. Contribute to the consolidation of internal finances and achieve the redistribution of income. economic activity and should stimulate efficiency and work.
The economic situation in Cuba in recent decades has forced the State to constantly make decisions that allow it to maintain the social benefits that Cubans enjoy. To fulfill these functions, it is necessary to mobilize the necessary financial resources to support this activity, which in Cuba is greater in relation to other countries with similar economic levels, due to the very essence of the socialist social system. For this reason, in August 1994, Law 73 of the Cuban tax system was approved, which had 11 taxes, 3 rates and one contribution. They are detailed below:
Taxes:
- Taxes on profits Taxes on personal income Taxes on sales Special tax on products Tax on public services Tax on the ownership or possession of certain goods Tax on land transport Tax on the transfer of goods and inheritances Tax on the use of labor force Tax on the use or exploitation of natural resources and for the protection of the environment.
Fees:
- Toll fee Fee for airport services to passengers Fee for the filing of advertisements and commercial propaganda.
Contribution:
- Contribution to Social Security.
As part of the new strategies for the redesign of the Cuban economic model with the aim of preserving the achievements of these years, oriented in the guidelines of the economic and social policy of the Party and the Revolution, the Cuban Parliament in July 2012 approved the law 113 of the Tax System. The new legislation establishes the rules on the payment of taxes, fees and contributions to the State Budget, like its predecessor, which with modifications and adaptations to the new historical-economic context, that is, the improvement and updating of the Tax System.
Law 113 of the Tax System came into force in January of this year in conjunction with its Regulations, Decree No. 308, of October 31, 2012, of the general rules and tax procedures, with a view to completing the collection plan, maintain levels of tax discipline and increase risk capacity, in addition to perfecting the organizational structure in the Tax Administration.
Its application takes into account the economic capacity of the subjects obliged to comply with it, as well as the characteristics of each territory and special regimes are contemplated for certain sectors, in this sense, agriculture stands out, for which a lower tax burden was established in relationship with other economic spheres.
The new tax structure generally establishes 19 taxes (seven taxes with respect to those set forth in the previous law), three contributions and the same number of rates. The seven new taxes took into account the policy outlined by the country; These are: Tax on the Property or Possession of Agricultural Lands, Tax on the Idleness of Agricultural and Forest Lands, Tax on the Use or Exploitation of the beaches, Tax on the Approved Dumping of Residuals in Hydrographic Basins, Tax on the Use and Exploitation of Bays, Tax for the Right to Use Land Water, Customs Tax. For the time being, the wage tax will not be required, until the economic-financial conditions allow its application,and the exemption is also maintained in the payment of this tax for family aid remittances received from abroad.
The new modifications focus on: the extension and terms of payment of taxes during the first three months of operations, to natural persons who start as self-employed workers, and will contribute to Social Security when they have no employment relationship or are beneficiaries of that system. The regulations also indicate that those with annual incomes of more than 50,000 Cuban pesos are required to have a simplified accounting system, and to set up an account at the bank. For activities of less complexity, (91 of the 178 authorized), a simplified scheme was conceived that allows paying taxes through a consolidated monthly fee in which the payment of the contribution to Social Security is not included.Those tasks that generate higher income must carry out the liquidation of the personal income tax at the end of the year by means of a Sworn Declaration, and its calculation will take into account the income obtained during the 12 months.
The main tax benefits reported in this law are found in the payment of taxes on sales or public services, which will be applied 10 percent on the figures achieved by the commercialization of goods or benefits executed as appropriate. the payment of the Personal Income Tax to taxpayers who file the Affidavit and pay it before February 28 will be reduced by five percent, the exemption from the payment of the Tax for the Use of Labor Force in the work on account will be maintained own and other forms of non-state management, for the first five workers that are hired, 20 percent will be deducted for taxes on Home Ownership, Wastelands and Agricultural Lands and on Land Transportation,For the payment before February 28, the Property Property Tax will not be required for five years for people who build by their own effort. The 20% Tax on the Transfer of Assets and Inheritances, to the heirs unfit to work, to those declared judicially incapable and to women over 60 years of age and men over 65 years of age will be deducted. of the Property or Possession Tax, to the usufructuaries of state lands, which extends to four years in cases infected with marabou. The toll rate will be reduced to drivers who pay in advance, according to the invested value of the toll cards, the rate of filing of advertisements and commercial advertising will be decreased by ten percent, to those who pay it in the first month of the year.The payment of the Income Tax will be discounted to entities that consistently demonstrate fiscal discipline in their tax obligations, payment deferrals are made more flexible, and late payment surcharges and fiscal fines are reduced, it foresees, for natural persons (TCP and others).) a wake-up call for the first breach. The power of the Minister of Finance and Prices to grant other bonuses and grant permanent or temporary exemptions is maintained.The power of the Minister of Finance and Prices to grant other bonuses and grant permanent or temporary exemptions is maintained.The power of the Minister of Finance and Prices to grant other bonuses and grant permanent or temporary exemptions is maintained.
Conclusions
The modifications made to the tax system are part of the measures taken by the country in its economic reordering with the aim of maintaining the social achievements made, guaranteeing the redistribution of income from the sectors with the greatest economic capacity, protecting the lowest-income people, stimulate the involvement of local governments in the search for income for their budgets, and implement a control system that ensures strict compliance with tax regulations. For this reason, it is essential to promote a tax culture on the importance of paying the taxes that had been lost in Cuba over the years, taking into account the social and economic impact that the population has in complying with tax obligations;A quote from our José Martí confirms this statement, “To educate is to deposit in each man all the human work that has gone before him; it is putting it at the level of its time, so that it floats on it and not leaving it below its time, it is preparing man for life ”.
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