Cuba Foreign Investment & Mariel (ZEDM) Tax Calculator
Estimate corporate tax holidays (8 to 15 years at 0% CIT), concessionary post-holiday rates (12% ZEDM / 15% Ley 118), 0% dividend repatriation withholding, and duty-free capital equipment imports under Cuban foreign investment law in USD.
Investment Framework & Commercial Scope
Fiscal Savings & Tax Liability
Under Ley 118 Article 9 and Decreto-Ley 313, foreign investors are guaranteed free transfer of dividends abroad without deductions or restrictive fiscal caps.
Statutory Executive Summary: Foreign Investment Fiscal Privileges
Under Cuba's Foreign Investment Act (Ley No. 118) and the Special Development Zone of Mariel (ZEDM Decreto-Ley No. 313), foreign capital receives unprecedented regional fiscal concessions:
- Extended Tax Holidays: Ley 118 grants an 8-year full tax exemption on net profits; ZEDM concessions offer 10 to 15 years at 0% Corporate Profits Tax (Impuesto sobre Utilidades).
- Concessionary Post-Holiday Rates: Post-holiday corporate tax is capped at 12% in ZEDM and 15% under Ley 118, compared to 35% for regular domestic Cuban entities.
- 0% Dividend Withholding Tax: Dividends repatriated abroad by foreign partners or shareholders incur zero withholding tax and are protected by state guarantees of free convertibility.
- 100% Tariff Exemption on Capital Equipment: All imported machinery, technology, and construction equipment entering Cuba for investment projects are 100% duty-free.
Comparative Matrix: Cuban Investment Regimes, Tax Rates & Repatriation Protections
Statutory comparison under Ley No. 118, ZEDM Decreto-Ley No. 313, and the standard Tax System Act (Ley 113).
| Investment Regime | Tax Holiday Period | Post-Holiday CIT Rate | Capital Goods Import Tariff | Outbound Dividend WHT | Reinvested Profit Tax |
|---|---|---|---|---|---|
| Mariel Free Zone (ZEDM) | 10 – 15 Years (0%) | 12.0% | 0% (Duty-Free) | 0.0% | 0% Exempt |
| Ley 118 Joint Venture | 8 Years (0%) | 15.0% | 0% (Setup Phase) | 0.0% | 0% Exempt |
| Standard Domestic Regime | None | 35.0% | 5% to 20% | Standard PIT | Taxable |
Frequently Asked Questions: Cuban Foreign Investment & ZEDM Taxation
What tax holidays are available under Cuba's Foreign Investment Act (Ley 118)?
Under Article 13 of Ley No. 118, foreign joint ventures (empresas mixtas) and international economic association contracts enjoy an 8-year statutory tax holiday with 0% Corporate Profits Tax (Impuesto sobre Utilidades), extendable by the Council of Ministers.
What corporate income tax rate applies after the tax holiday expires?
Once the holiday period concludes, foreign joint ventures pay a concessionary corporate tax rate of 15% (compared to the standard domestic 35% rate). In the Mariel Special Development Zone (ZEDM), the post-holiday rate is only 12%.
Are foreign investors taxed when repatriating profits and dividends abroad?
No. Under both Ley No. 118 and Decreto-Ley No. 313 (ZEDM), dividend distributions and net profits transferred abroad to foreign partners or parent corporations are subject to a 0% withholding tax with a statutory guarantee of free convertibility.
Are reinvested profits subject to corporate profits tax in Cuba?
No. Net corporate profits that are reinvested into enterprise capitalization or authorized expansion projects within Cuba are 100% exempt from the Impuesto sobre Utilidades.
What customs tariff exemptions apply to capital goods and machinery?
Under Ley 118 and ZEDM regulations, 100% customs tariff exemption (0% arancel) applies to imported capital machinery, production equipment, technology, and construction supplies during the investment execution and setup phase.
Engr. Muhammad Shahzad
Verified Compliance AuthorLead Compliance Engineer & Caribbean Trade Specialist
Specialist in Cuban Foreign Investment Law (Ley No. 118), Special Development Zone of Mariel (ZEDM) corporate structuring, and international profit repatriation tax treaties.
📊 Tabla de Liquidacion Tributaria y Seguridad Social ONAT Cuba
| Statutory Component / Legal Deduction Item | Calculated Amount (CUP) |
|---|---|
| Primary Net / Statutory Payable Amount | 0.00 CUP |
Engr. Muhammad Shahzad
Principal Financial Systems Architect & Cuban ONAT & Ministry of Labor and Social Security Architect
Lead software and systems architect specializing in high-performance browser computing, algorithmic validation, financial models, and zero-telemetry client-side privacy architecture.