Clarification on the new scale of the personal income tax in Cuba

The 'Economic Agenda' subdomain of the official media outlet Cubadebate published a text on the new progressive scale for the personal income tax return.

As it became known, the Law 174 del Presupuesto del Estado para 2025 incluye ajustes importantes a la Ley 113 del Sistema Tributario. Uno de los cambios principales es la actualización de la escala progresiva usada para calcular el Impuesto sobre Ingresos Personales mediante Declaración Jurada, basada en los ingresos obtenidos durante 2024.

Esta nueva escala progresiva, detallada en el artículo 65 de la Ley 174, aplica a diversos grupos: trabajadores por cuenta propia, artistas, intelectuales, periodistas, diseñadores, comunicadores sociales, y quienes reciben gratificaciones por trabajar en representaciones extranjeras acreditadas en el país, como embajadas u organismos internacionales. A partir de los ingresos totales, estas personas deben aplicar la escala para calcular el impuesto anual a pagar en CUP.

Deductions allowed before applying the scale

According to article, Before calculating tax, individuals can subtract certain deductions from their gross income, including:

1. Minimum exempt: 39,120.00 CUP.
2. Deductible expenses: : 100% of activity-related expenses can be deducted if at least 80% are properly documented and recorded.
3. Taxes paid: These include 10% Sales or Services Tax, contributions for the use of labor, advertising payments, social security, among others.
4. Lease payments: If you lease property from authorized state entities.
5. Local contributions: For restoration and preservation of areas where it works.
6. Other discounts permitted by law.

After these deductions, the taxable income earned is classified according to the progressive scale. This system means that the higher the income, the higher the percentage of taxes paid.

Benefits of the new scale

The current scale has advantages over the previous one:

• Increases the taxable income brackets and ranges.
• Reduces tax percentages in each bracket.
• It sets a maximum of 50%, applicable only to much higher incomes.

Additional deductions and tax benefits

If you've already made advance payments, such as monthly installments or withholdings, these will be deducted from your final tax. You can also take advantage of:

• Discount for prompt payment: 5% less if you file and pay before February 28.
• Discount for digital payment: 3% less if you use tools like Transfermóvil.

This facilitates calculations and promotes tax compliance.