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.
The CUC is pegged to the US dollar and its exchange rate is 1 CUC per 25 Cuban pesos
From 1990 to 1993, the exchange rate of the Cuban peso
suffered an enormous depreciation vis-a-vis the dollar in the informal market.
Other factors dampening visitor levels include the high cost of oil, European tourists' preference for short trips, and the appreciation of Cuban peso
in 2004, which cut hotel investment.
The cuentapropistas are visible as never before, and the Cuban peso
is becoming more important in everyday transactions.
Churchill China worker Hazel added: "We called the hotel and they said they hadn't been paid for the room and that we'd got to pay 100 Cuban Pesos
a night per person.
Pottery worker Hazel added: "We called the hotel and they said they hadn't been paid for the room and that we'd got to pay 100 Cuban Pesos
a night per person.
Cash is a must, and exchanging those dollars into Cuban pesos
is a first-things-first sort of activity upon entering the island.
One hurdle is the dual-currency system in Cuba, which is comprised of Cuban pesos
and convertible Cuban pesos
dollar), instead requiring that they be sold in Cuban pesos
. But does Varela really make any money from his recordings at all?
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.
Cuban residents are paid in regular Cuban pesos
, which currently have an exchange rate of 26.5 to one.