In a move that is expected to draw in much needed foreign investment, the Cuban government published the text of a new law that will take effect in June.
The new Foreign Investment Law was published in the official Gazette on Wednesday and is said to part of President Raul Castro’s plan to improve Cuba’s socialist economic model.
The new law will exempt investors from paying tax on personal income and the levy on foreign businesses profits will be halved to 15 percent. There will also be a tax “holiday” for the first eight years a business is in operation.
According to a report in Fox News – Latino, hiring of non-managerial staff will be carried out by a government employment agency, which will negotiate salaries and control payment to Cuban workers. Foreign nationals employed by an international company operating under the new law will be able to repatriate 66 percent of their pay.