The entities that begin to participate in the exchange market official of Cuba will enjoy an exceptional tax incentive: during their first year of operations, the income generated by the purchase and sale of foreign currency will be excluded from the tax base of the Profit Tax.
The measure, published this week in the Official Gazetteseeks to stimulate the participation of economic actors in a key segment for the country’s monetary reorganization and takes place when to date, “the CUP has devalued 3.9% against the USD with the floating rate,” according to the economist appreciated independent Pedro Monreal.
This depreciation fails, according to the expert in a note published on the
Tax incentive to boost the market
Resolution 374/2025 of the Ministry of Finance and Prices (MFP), approved last December but published now, establishes that profits derived from participation in the exchange market will not be taxed during the first year of activity.
The above will be carried out “in accordance with the exchange rate established for such purposes, by the Central Bank of Cuba”, according to the rule, which also specifies that the adjustment of the tax base “proceeds up to the amount of the accounting profit obtained in the period.”
The measure “seeks to stimulate the participation of the corresponding entities in the emerging market,” point out about it Cubadebate.
Central Bank enables banking channels for the non-state sector to access foreign currency
This tax exemption applies to operations carried out as of December 18 – when the modifications already underway in the official exchange market were announced – and will be extended throughout 2026, in an attempt to consolidate confidence in the new exchange scheme and attract a greater volume of operations.
The resolution does not specify which segment of the current official exchange market the rule is based on, or if it includes the three currently existing after the establishment of a third group for natural and legal persons based on a floating rate whose values change – or can change – on a daily basis.
However, another resolution published in the Gaceta itself does focus on that third segment.
A rescue operation: the peso as a functional currency
In parallel, Resolution 373/2025 introduces a modification to Specific Accounting Standard No. 17 (NEC 17), which regulates operations with foreign currency resulting from the exchange market.
The update responds to Decree-Law 113 “On foreign currency transactions in the national economy”, from last December, and seeks to standardize the accounting record of these operations.
NEC 17 establishes that all entities subject to the standard must use the Cuban peso as the functional, presentation and accounting currency.
Foreign currency transactions will be recorded applying the floating rate in force in the exchange market at the time of the operation, while at the close of each accounting period the monetary items must be adjusted according to the closing exchange rate.
Foreign exchange segments
The Cuban exchange market is organized into three segments. Segment III, to which the new regulations are directed, is intended for authorized natural and legal persons.
Segments I and II, which operate under other rules, may also intervene in segment III in an authorized manner, although they must recognize the exchange differences between the rates of their segments and those of segment III as income or expenses.
Financial institutions regulated directly by the Central Bank of Cuba are excluded from the scope of NEC 17, with the exception of the insurance sector.
The measures are part of the monetary reorganization process that Cuba has been promoting for several years and that until now has not managed to weather the effects of inflation. The creation of a more regulated exchange market responds to the need to capture foreign currency, stimulate national production and offer greater certainty to economic actors, according to the authorities.
Previously, Decree-Law 113, approved in December 2025, updated the legal regime for foreign currency transactions with the purpose of increasing the country’s income in foreign currencies.
Resolution 140 of the Ministry of Economy and Planning, also from December, established the general bases for the management and allocation of foreign currency in the national economy, which was interpreted as greater control over the meager amounts of hard currency that circulate on the island at the business level.
Incentives and prospects
The tax incentive provided by MFP Resolution 374/2025 seeks to reduce the initial barriers for entities that decide to participate in the exchange market.
By excluding income from the tax base of the Profit Tax, the Government intends for companies to concentrate on consolidating their operations without the immediate pressure of the tax burden.
Analysts consider that the measure could attract a greater number of actors, especially in a context where earning foreign currency is crucial to finance imports and sustain national production.
Accounting transparency, for its part, would allow a more precise assessment of market performance and its impact on the economy.
Both resolutions came into force retroactively as of December 18, 2025. This means that operations carried out since that date are already covered by the new accounting rules and the tax benefit. Retroactive application seeks to avoid legal loopholes and ensure that all recent transactions conform to the new regulatory framework.
Although it is still early to measure the real impact of the provisions, some specialists point out that the tax exemption provides an incentive that can be seductive in an economic environment marked by liquidity restrictions.
However, questions remain about the system’s ability to sustain a constant flow of currency and the reaction of private actors to the new regulations.
The success of the measures will depend largely on the confidence that the market manages to generate and the stability of exchange rates, which are currently very different, especially in terms of the US dollar, between the official floating rate and the informal rate.
