Published on Monday, December 10, 2007
By Anthony Boadle
Representatives of 698 foreign companies registered with
Foreign businesses in communist
To supplement low wages, companies often pay Cuban staff an additional amount under the table in hard currency, and authorities have turned a blind eye, until now.
"This will normalize relations between foreign investors and
"Cuban workers receive their salary in pesos, and it is known that they receive another payment. We are adjusting the taxes to the circumstances," she said.
Multinational companies have long urged
"This will allow us to legally pay all our workers in hard currency," said a manager of a major foreign company in
Western diplomats said allowing foreign companies to pay in hard currency was a break with
"This recognizes that some people are more equal than others in
Cubans have lived virtually free of taxes for three decades, so for many of those employed by foreign companies, filing annual income tax returns will come as a shock.
The National Tax Office was set up in 1995 and the next year began taxing the hard currency income of self-employed Cubans, mainly family restaurants known as "paladares," the closest thing to a small private business in
Their taxes must be paid in hard currency according to a scale that rises as high as 40 percent.