BLOOMBERG. By Blake Schmidt - Oct 22, 2010 Cuba vowed to crack down on self- employed tax evaders as the government laid out new tax regulations as part of a "redesign" of the economy that will allow more private enterprise. The Communist Party newspaper Granma said the new tax rules are aimed at "avoiding concentration of wealth." It based its information on interviews with tax officials including deputy director of the tax administration, Vladimir Regueiro Ale.">BLOOMBERG. By Blake Schmidt - Oct 22, 2010 Cuba vowed to crack down on self- employed tax evaders as the government laid out new tax regulations as part of a "redesign" of the economy that will allow more private enterprise. The Communist Party newspaper Granma said the new tax rules are aimed at "avoiding concentration of wealth." It based its information on interviews with tax officials including deputy director of the tax administration, Vladimir Regueiro Ale.">

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Cuba Lays Out Tax Rules for Entrepreneurs as Business Opportunities Expand

BLOOMBERG. By Blake Schmidt - Oct 22, 2010 Cuba vowed to crack down on self- employed tax evaders as the government laid out new tax regulations as part of a "redesign" of the economy that will allow more private enterprise.

The Communist Party newspaper Granma said the new tax rules are aimed at "avoiding concentration of wealth." It based its information on interviews with tax officials including deputy director of the tax administration, Vladimir Regueiro Ale.

The government of President Raul Castro last month announced it will dismiss 500,000 state workers by March, affecting 10 percent of the workforce, as the island faces its worst economic slump since the former Soviet Union ended support in the 1990s. Those dismissed are being encouraged to go into business for themselves, and Granma said the central bank may offer micro-credits to new entrepreneurs.

Self-employed in most of the 178 newly authorized fields, ranging from wine makers to public bathroom janitors, will pay a new monthly tax quota set by the Finance Ministry, the newspaper said, without giving further details. The quota tax will supplement municipal budgets.

Others will be expected to pay income tax, social security, and sales tax. Employers will pay an additional tax for contracting workers, the newspaper said.

"With implementation of the new regulations and strengthening of tax collection controls, `undocumented' workers or those who do not pay what is owed will submit to the power of the law," Granma said.

President Castro, 79, has initiated measures to open the economy, including loosening of property laws and controls prohibiting private enterprise such as taxi and mobile phone companies, since his brother Fidel began handing over power in 2006.

To contact the reporter on this story: Blake Schmidt in Granada, Nicaragua at bschmidt16@...

To contact the editor responsible for this story: Joshua Goodman at jgoodman19@....

Source:http://groups.yahoo.com/group/CubaNews/message/118614

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