Cuba seeks to curb tax evasion in house sales

Cuba seeks to curb tax evasion in house salesHAVANA, Cuba, Apr 12 (ACN) The Cuban Council of State passed the Decree Law 343 of 2016, published this Wednesday in the Official Gazette, that aims at curbing tax evasion after the sale or donation of real estate.

The Law comes accompanied by resolutions of the Ministries of Justice and Finance and Prices (MFP), and sets the reference value (VR) of the property, as a complement to the legal price, said Vladimir Regueiro Ale, director of Revenue Policy of the MFP.
At a press conference, Regueiro said that said RV is not a new legal value of housing; it is only used to calculate taxes due, though the price is agreed between the parties and a flat 4 percent tax is applicable for both the seller and the buyer.
The measure, according to the official, is necessary in order to eliminate crimes committed such as understating the real amount of the transaction, in addition to masking these acts with donations, bringing with it the increase of tax evasion.

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