Tax Residency in Cuba
1. Criteria for Determining Tax Residency in Cuba
According to Article 10 of Cuba's Tax Code, an individual is considered a tax resident if they meet any of the following criteria:
- They have their permanent residence in Cuba.
- They are present in Cuba for more than 183 days in a calendar year.
- They have their center of economic interests in Cuba.
For entities, tax residency is determined based on their legal domicile or the place where their effective management is located.
2. Impact of International Tax Treaties on Tax Residency Criteria
Cuba has entered into several international tax treaties, including the Double Taxation Agreement with Spain. These treaties may modify or provide exceptions to the standard criteria for tax residency as defined in domestic law.
For example, the Double Taxation Agreement with Spain provides that an individual is considered a resident of Cuba if they have a permanent home in Cuba or if their habitual abode is in Cuba. The treaty also includes tie-breaker rules for individuals who are considered residents of both Cuba and Spain under each country's domestic law.
These treaty-specific modifications aim to provide clarity and prevent double taxation by establishing clear rules for determining tax residency in cases involving cross-border activities. They reflect the mutual agreement between Cuba and Spain to facilitate tax compliance and enhance economic cooperation between the two countries.
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