The Cuban Ministry of Finance and Prices (MFP) has enacted Resolution 170/2026, outlining the Financial and Tax Procedures for the Cuban State Enterprise System. This regulation was officially published on Wednesday in the 2026 Ordinary Gazette No. 72, spanning pages 17 to 22.
Signed by Minister Vladimir Regueiro Ale on July 24, the directive applies to state enterprises, subsidiaries, commercial companies, as well as micro, small, and medium-sized state-owned enterprises (state MIPYMES) and business groups.
The primary goal, as stated in the document, is to clearly separate state regulatory functions from those performed by the owner’s representative, particularly concerning the allocation of profits after taxes.
Core Areas of the Resolution
The resolution is structured around three major areas: mandatory and voluntary provisions, the reserve for losses and contingencies, and the distribution of post-tax profits.
According to Article 3, all corporate entities are required to establish a Provision for short-term social security subsidies, charged to the expense account titled "Other taxes, fees, and contributions."
Financial institutions, including banks, must also create a Financial Asset Provision following the guidelines set by the Central Bank of Cuba.
Reserves and Profit Distribution
Article 8 mandates a reserve for losses and contingencies for all corporate entities, excluding banks and non-bank financial institutions, which are governed by specific legislation.
As for profit distribution, Article 10 dictates that state enterprises earning profits by the end of the fiscal year must contribute an amount for the return on state investment, categorized as non-tax revenue.
Commercial companies are required to declare dividends by March 31 each year, as specified in Article 16.
The official sources for calculating profit distribution include financial statements, tax returns, and statistical data submitted to the National Office of Statistics and Information (ONEI).
Repeal and Expansion of Previous Regulations
Resolution 170/2026 repeals the former Resolution 332 of 2025, which was issued on November 25, 2025, by the MFP. The previous regulation governed financial relationships between state enterprises, entirely Cuban-owned commercial companies, and higher management organizations with the State, but it excluded state MIPYMES.
The repeal is explicitly justified in the text to "prevent legislative dispersion," while the new regulation broadens its scope to include state MIPYMES.
Publication and Implementation
Gazette No. 72 jointly publishes this resolution alongside Decree-Law 120/2026 of the Council of State regarding the State Enterprise System and three resolutions from the National Institute of State-Owned Assets (INAEES), an entity established in January 2026 to centralize the oversight of over 2,000 state enterprises.
Resolution 170/2026 is set to take effect on January 1, 2027, along with the rest of the regulatory package released in this edition of the Official Gazette.
Frequently Asked Questions About Cuban State Enterprise Regulations
What is the purpose of Resolution 170/2026?
The resolution aims to separate state regulatory functions from those executed by the owner’s representative, particularly regarding the allocation of profits after taxes.
Which entities are affected by the new resolution?
The resolution applies to state enterprises, subsidiaries, commercial companies, micro, small, and medium-sized state-owned enterprises (MIPYMES), and business groups.
When will Resolution 170/2026 come into effect?
The resolution is scheduled to come into effect on January 1, 2027.