What is the body in charge of the direction and control of the state policy in relation to self-employed workers?
The National Institute of Non-State Economic Actors is the national body under the Council of Ministers responsible for directing and controlling the State’s policy for the development and operation of self-employment.
Who may engage in self-employment?
Cuban citizens with actual residence in the national territory and foreigners with permanent residence who comply with the provisions of the Constitution of the Republic of Cuba, the Labor Code, Decree-Law 90 and other complementary regulations.
What are the requirements for practice?
Approval of a work project that includes a description of the activity or activities to be performed, the location where it will be performed, the number of workers to be hired, and the hours of operation..
How can it be exercised?
Self-employment or contracting up to a limit of three persons, whether or not they are family members. The authorization for self-employment is personal and non-transferable. The activities that cannot be carried out on a self-employed basis are those provided for by specific legislation.
What rights do the project owner’s staff members have?
Workers hired by the owner are covered by the general social security system.
What are the procedures for approving the work project?
The application for authorization to exercise self-employment shall be made in person at the office of the appropriate body, according to the function to be performed, regardless of the municipality of residence of the interested party, or through the use of information and communication technologies, as soon as the conditions are met. The work project may be modified at any time at the request of the self-employed person; if a prior authorization is required, it is subject to the authorization procedure provided for by the Decree-Law; otherwise, only the modifications are notified to the National Tax Administration Office for the purpose of updating the taxpayers’ register.
What obligations does the SEW have?
To carry out the activities described in the work project for which it is authorized; to carry, in the exercise of the activity, the accreditation documents that authorize it; to exercise daily the activities except those of cargo and passenger transport, rental of means of transport and of housing, rooms and spaces; to comply with its tax obligations; to formalize the labor relationship with the workers it hires and to guarantee the respect of their labor and safety rights; to domicile the payrolls to bank the salary payments; to use raw materials, materials and equipment of lawful origin; to be responsible for the quality of the production and services it provides; to comply with the provisions of the competent authority or the legislation on prices; to comply with the rules of territorial planning and urbanism; to make rational use of energy; to ensure that the denomination of the work project is not in a foreign language; to post in a visible place the hours of operation of the establishment and the license issued by the Trade Registry.
Can the self-employed be associated with another or a non-state form of management different from their own?
Self-employed persons may not be associated with another self-employed person by means of an economic contract for the provision of services for the performance of permanent activities.
They may be members of micro, small and medium-sized enterprises and non-agricultural cooperatives, in activities other than those approved in the work project.
Who will replace the self-employed person if he/she is absent for an extended period of time?
The self-employed worker may be absent due to business or personal problems, illness of the self-employed worker or of family members under his/her responsibility, vacation and for a period of up to three months within the calendar year for a trip abroad. For these purposes, the self-employed person designates one of the contracted persons to take over his duties, which he notifies to the Procedures Office, where the compliance of the designated person is recorded.
At the end of the authorized period, the self-employed person notifies the aforementioned office of his reinstatement, and if he does not do so without a valid reason, the head of the office cancels the authorization by means of a resolution.
Can the SEW request a temporary suspension of its practice?
It may do so in the following cases: temporary inability to work for up to six months, attested by a medical certificate; temporary inability to work for more than six months, attested by an opinion issued by the Commission of Medical Labor Expertise; during pregnancy, attested by a medical certificate, and during the period in which they are in the enjoyment of paid maternity leave and social benefits; for the period during which they are receiving the monetary benefit granted for the care of sick children; their participation in mobilizations of interest for defense and national security, for periods exceeding one month, accredited by the competent authority; mobilization at the request of the National Electoral Council for electoral processes; Work as a lay judge, upon presentation of the request issued by the corresponding court; Disaster or emergency situations; In the case of carriers, for the repair of the vehicle or in the case of fishermen, for the repair of the means of commercial fishing, in both cases for a period of six months; and for the same period in the case of actions of preservation and transformation of the property or space where the activity is exercised; being in provisional detention or in compliance with a criminal sanction of deprivation of liberty that prevents him/her from exercising self-employment, the latter also for a period of up to six months.
How does the tax system work in this case?
In accordance with the General Tax System, self-employed persons file a sworn statement at the end of the fiscal year for the purpose of making the liquidation and additional payment of personal income tax. They are subject to the monthly payment of sales tax and service tax at a rate of ten percent of the monthly income received. Income from commissions derived from the activities of telecommunications agents and insurance agents are not subject to the application of the taxes referred to in the preceding paragraph. Commercial fishermen and contract workers in the artistic sector are taxed according to their specific rules.
How are self-employed persons connected to the tax bank account?
Self-employed workers are required to open and maintain a bank account in a branch of a Cuban commercial bank, which they declare to the Tax Administration and which is considered a tax bank account for all legal and tax control purposes.
