Cuba Tax Agency Clarifies Withholding of Individual Income, Social Security for Salaried Workers

The Cuban National Office of Tax Administration (ONAT) July 7 clarified the withholding of individual income tax (ISIP) and the Special Contribution to Social Security (CESS), under budget measure Resolution No. 41-2023. The Tax Agency clarifies that: 1) the resolution’s brackets for ISIP currently only apply to withholding by employers in the governmental sector and not to micro, small-, and medium-sized enterprises (MIPYMES) or non-agricultural cooperatives (CNAs); 2) the resolution’s new brackets for CESS apply to both governmental and non-governmental sectors, including the foreign investment sector and workers in the Mariel Special Development Zone; 3) ISIP and CESS must be ...