Cuba releases details of project to attract foreign investors
Cuba’s government has released further information on a proposed foreign investment law that will cut the profits tax in half and exempt investors from paying it for eight years in an attempt to attract capital into the communist economy.
The law would address the lengthy and sometimes murky process to approve foreign investment deals and improve investment guarantees, two major concerns of potential investors and foreign governments. President Raul Castro’s government is promising legal protections to persuade foreign investors to risk their capital in the Soviet-style economy, and new incentives such as the dramatically lowered tax.
« The Cuban government has a major credibility gap to overcome with foreign investors. Investors will want evidence, not just legislation, that Cuba is prepared to allow investors to make money, employ Cubans they select and not move the goal posts when success seems to be too rewarding, » said Paul Hare, a former British ambassador to Cuba who now teaches at Boston University.
The new law « would apply (to investors) … a tax of 15 percent on taxable net profits, » after which all profit could be repatriated, Juventud Rebelde reported. Under the current foreign investment law, which went into effect in 1995, all tax breaks are negotiated and foreign firms pay a 30 percent profits tax and 20 percent labor tax.
Baisser les impôts pour attirer des investisseurs étrangers… Si les cubains peuvent comprendre ça, pourquoi nos politiciens sont incapable d’en faire de même ?