The Ministry of Labor and Social Security (MTSS) of Cuba and the National Tax Administration Office (ONAT) They agreed this Thursday on a new procedure for self-employed workers (TCP) who did not present their business projects in the corresponding paperwork offices, a re-registration process established by Decree Law No. 44 of 2021 according to the ONAT.
The most important decision was adopted by the MTSS and allows those who have up to three hired workers and have kept paying taxes continue the exercise of their activities, in accordance with the report of the Cuban News Agency (ACN).
??Reveal @MTSS_CUBA and the @OnatdeCuba what will happen to TCP that did not present their projects in the paperwork offices.
?Both entities agreed on the treatment they will give to self-employed workers (TCP) who did not present their business projects in the offices— ONAT of Cuba (@OnatdeCuba) October 27, 2022
Said measure is based on the recognition that these TCP continue to carry out the same activity, therefore, what is established in the First Transitory Provision of the aforementioned Decree Law 44 will not apply to them, where it is stipulated that the re-registration would take place until September 20 of 2022. Once this period has expired, the authorization to carry out the activity is cancelled.
The current legal norm establishes that to be TCP you cannot hire more than three workers. When this requirement is not met, the holders or owners of the business must adjust their employees to that number or reconvert their business into a micro, small or medium enterprises (MSMEs) or non-agricultural cooperative (CNA). Otherwise, the exercise of self-employment ceases, the information points out.
The ONAT will cancel the TCP with more than three contracts, those associated with the State Traffic Unit (carriers) who did not appear to renew their Transport Operating License and those who did not make any payment of taxes.
It will also automatically update the registration status of contracted artists and temporary agricultural workers who have no other self-employment activity, TCPs without contracts who carry out one or several economic activities, and TCPs who have up to three contractors and They also exercise more than one businessindicates the publication.
The ONAT clarifies that the update or modification will basically consist of the substitution of the three-digit format to be used to identify TCP activities, by the letter format assigned by the MTSS or the UET, according to the Classifier of Economic Activities.
Updated taxpayers will be assigned the General Taxation Regime and those who had been approved for the Simplified Regime will maintain that variant, points out the ACN.
Self-employed workers are part of the business ecosystem promoted by the Cuban government and coexist with other economic actors, such as the socialist state enterpriseCNAs and MSMEs, whose approvals to operate began to be granted in September 2021.
According to the most up-to-date data from the Ministry of Economy and Planning (Mep), new ventures authorized in the country already exceed the figure of 5500and more than half of them come from pre-existing businesses, such as those that held TCP licenses to operate.
With this and other measures, the executive headed by Miguel Díaz-Canel intends to revitalize the battered country’s economyplunged into a long and deep crisis, which in recent times has been aggravated by the impact of the COVID-19 pandemic, the sanctions imposed by the US administration and the scant effect of the measures adopted by the government to overcome such situation.
