The new tax system, instituted after the approval of Resolution 298 in 2011, established three types of taxes for self-employed workers (or microentrepreneurs): (1) a progressive income tax (ranging from 15 percent to 50 percent of annual income) where taxes are paid in regular Cuban pesos
, regardless of the currency in which business is conducted; (2) a simplified tax system consisting of fixed monthly payments, if no third-party self-employed workers are hired; (3) a 25 percent payroll tax on employee wages and a 10 percent sales tax, which includes a business expense allowance of up to 40 percent.
From 1990 to 1993, the exchange rate of the Cuban peso
suffered an enormous depreciation vis-a-vis the dollar in the informal market.
Long lines of people at casas de cambio are mostly buying convertible pesos (CUCs) with Cuban pesos
, not dollars, and state shops charging CUCs today offer a wide variety of appliances, electronics, shoes, hardware and food--pretty much everything you can find in Miami, from Dove soap bars to Red Bull energy drinks.
8) A recent economic report released by the Cuban government indicates that the average monthly salary for 2015 was 687 Cuban pesos
, which is equivalent to approximately $26 U.
There is free health care and education, including at university, but most people are employees of the state, earning around 80 Convertible Cuban pesos
a month (80 US$) and residents rely on basic monthly government rations such as rice, beans and sugar.
Bank offices in the country have started receiving applications for loans in Cuban pesos
Individuals can buy 24 Cuban pesos
(CUP) for each CUC sold, or sell 25 Cuban pesos
for each CUC bought; enterprises, however, must exchange CUP and CUC at a 1:1 ratio.
She tells me that despite holding a PhD in ecology, she must run her accommodation to earn convertible pesos (CUCs), the Cuban equivalent of US dollars, because the state pay in Cuban pesos
won't support even a basic existence.
To make ends meet, enterprising individuals began opening the doors of their homes to tourists to earn a few Cuban pesos
The 55-year-old father-of two recalls: "At first they wanted about 350 Cuban pesos
which is about pounds 250
I was earning ten Cuban pesos
per day with Havana Jazz.
Nolberto was very thirsty, so after a few rounds of drinks, I settled up the bill - around pounds 5 in Cuban pesos