Cuba Corporate Tax Guide 2026

Overview — Corporate Tax in Cuba

Corporate tax in Cuba is administered by the Oficina Nacional de Administracion Tributaria (ONAT) under Law 113/2012 (Ley del Sistema Tributario). A company is tax resident if it is incorporated under Cuban law or has its place of effective management in Cuba. Resident companies are taxed on worldwide income; non-resident companies with a permanent establishment in Cuba are taxed on Cuban-source income only. The Cuban economy remains state-dominated, with the state controlling most large enterprises. However, the private sector has expanded significantly since the economic reforms, including small and medium-sized enterprises (PYMEs), cooperatives, and self-employed workers. Foreign investment is permitted through joint ventures and international economic associations under Law 118/2014.

Standard Corporate Tax Rate — 35%

The standard CIT rate for resident companies in Cuba is 35% of net taxable profits. Taxable profit is computed as gross revenue less allowable deductions including operating expenses, depreciation, interest costs, and losses carried forward. Losses may be carried forward for up to 5 years. Capital gains are included in ordinary income and taxed at the standard CIT rate — there is no separate capital gains tax for companies. The 35% rate applies to most state-owned enterprises and private companies operating outside special regimes. Dividends paid by a Cuban company to its shareholders are subject to a separate 15% withholding tax on profit distribution.

Reduced Rates — 25% for Joint Ventures & Priority Sectors

Certain enterprises benefit from a reduced CIT rate of 25%. These include:

• Joint ventures (Empresas Mixtas) with foreign participation under Law 118/2014
• International economic associations (Asociaciones Economicas Internacionales)
• Priority sector enterprises as designated by the Council of Ministers (tourism, biotechnology, renewable energy, mining, and manufacturing)
• Small and medium-sized enterprises (PYMEs) in qualifying activities
• Cooperatives (Cooperativas No Agropecuarias) engaged in approved economic activities

The reduced 25% rate is intended to encourage private sector development and foreign investment. Qualifying enterprises must apply to ONAT for the reduced rate and demonstrate compliance with the relevant sector criteria.

Agriculture — 15%

Agricultural producers and agricultural cooperatives benefit from a reduced CIT rate of 15%. This preferential rate is designed to support food production and reduce Cuba's dependence on food imports. Qualifying activities include:

• Crop production (sugar cane, rice, beans, fruits, vegetables, coffee, tobacco)
• Livestock farming and dairy production
• Agricultural cooperatives (Cooperativas de Produccion Agropecuaria)
• Agro-processing activities directly related to primary production

The 15% rate applies to the full taxable profit of qualifying agricultural enterprises. To qualify, at least 60% of the enterprise's gross income must be derived from agricultural activities.

Mariel Special Development Zone (ZED Mariel)

The Mariel Special Development Zone (Zona Especial de Desarrollo Mariel) is Cuba's flagship economic reform initiative offering preferential tax treatment for businesses established within the zone. Key tax benefits include:

• CIT rate — 10% (compared to 35% standard), or 5% for high-technology and strategic projects
• Exemption from profit distribution tax — 0% withholding on profit distributions (normally 15%)
• Exemption from Sales and Services Tax — for goods and services traded within the zone
• Customs duties — exemption on imports of machinery, equipment, and raw materials
• Labour tax incentives — reduced rates on payroll taxes for employees working in the zone
• Tax stability guarantee — tax benefits are guaranteed for the duration of the investment contract (typically 10–15 years)

The Mariel SEZ is located 45 km west of Havana and includes a modern container port, industrial parks, and logistics infrastructure. It is administered by the Mariel Zone Development Office (OZD).

FAQs

What is the penalty for late filing of corporate tax returns?

Late filing attracts penalties of up to 50% of the tax due, plus monthly interest. ONAT can also suspend operations of non-compliant enterprises.

Can foreign companies claim tax treaty relief?

Cuba has a limited double tax treaty network. Treaties exist with Spain, China, Russia, Vietnam, and a few other countries. The Mariel Zone offers statutory relief that may substitute for treaty access.

Is there a minimum tax for loss-making companies?

Cuba does not impose a minimum tax on loss-making companies. Losses may be carried forward for up to 5 years. However, persistent losses may trigger an ONAT audit.

Disclaimer

This guide provides general information about Cuban corporate tax for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Cuban tax advisor or the Oficina Nacional de Administracion Tributaria for advice specific to your situation. InvestmentKit does not provide tax advice.