Welcome to DU!
The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards.
Join the community:
Create a free account
Support DU (and get rid of ads!):
Become a Star Member
Latest Breaking News
General Discussion
The DU Lounge
All Forums
Issue Forums
Culture Forums
Alliance Forums
Region Forums
Support Forums
Help & Search
General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsCuba Publishes Text of Foreign Investment Law
http://abcnews.go.com/International/wireStory/cuba-publishes-text-foreign-investment-law-23349640Cuba on Wednesday published the full language of a new law that seeks to make it more attractive for foreign investors to bring badly needed capital to the island, but provides less advantage for projects that are 100 percent foreign-financed.
~ snip ~
The measure, which takes effect in late June, includes tax breaks for new investments and property guarantees for investors. It also outlines arbitration procedures and labor rules for foreign-financed projects.
Investments in mixed-ownership projects or in tandem with independent cooperatives will enjoy a tax holiday for the first eight years of operation and pay 15 percent on profits after that about half the current rate. Such operations will also be exempt from payroll taxes.
~ snip ~
-----------------------------------------------------------------
Communism is not going away in Cuba in the near term, but it appears that it is starting to recognize that investment for gain is a necessary component for economic development.
InfoView thread info, including edit history
TrashPut this thread in your Trash Can (My DU » Trash Can)
BookmarkAdd this thread to your Bookmarks (My DU » Bookmarks)
2 replies, 508 views
ShareGet links to this post and/or share on social media
AlertAlert this post for a rule violation
PowersThere are no powers you can use on this post
EditCannot edit other people's posts
ReplyReply to this post
EditCannot edit other people's posts
Rec (0)
ReplyReply to this post
2 replies
= new reply since forum marked as read
Highlight:
NoneDon't highlight anything
5 newestHighlight 5 most recent replies
Cuba Publishes Text of Foreign Investment Law (Original Post)
FrodosPet
Apr 2014
OP
FrodosPet
(5,169 posts)1. New Foreign Investment Law Favors Cuba’s Development
http://www.cadenagramonte.cu/english/index.php/show/articles/17831:new-foreign-investment-law-favors-cubas-development
Havana, Cuba, Apr 24.- The new Foreign Investment Law is necessary because it will be implemented in a peculiar stage of development of the country and amidst the update of Cuban economy, said Foreign Trade and Investment Minister Rodrigo Malmierca.
In a prime-time television show, Malmierca explained the main aspects of the new law, recently approved by the Cuban Parliament. He said that the implementation of the new legislation does not mean the abandonment of socialism, but the strengthening of foreign investment as an additional element for the development of the country.
Cuban economy needs to increase its levels over 20 percent, which would favor the growth of the Gross Domestic Product by five percent in a sustained manner. The law will also favor the introduction of capital and so contribute to count on two billion dollars annually, as a complement to the efforts being made by the country, he said.
However, the minister noted that the implementation of the law cannot be looked at separately from the complex situation of Cuba, a country under the US blockade, with debts and high financial risks, which causes investors to operate with some limits and with this in mind the law is crystal clear, attractive and transparent, Malmierca stressed.
The law prioritizes eleven sectors including agriculture, the food industry, the sugar sector, the metal and light industries, the pharmaceutical and biotechnology fields, energy, mines, wholesale market, tourism, construction and transportation
Havana, Cuba, Apr 24.- The new Foreign Investment Law is necessary because it will be implemented in a peculiar stage of development of the country and amidst the update of Cuban economy, said Foreign Trade and Investment Minister Rodrigo Malmierca.
In a prime-time television show, Malmierca explained the main aspects of the new law, recently approved by the Cuban Parliament. He said that the implementation of the new legislation does not mean the abandonment of socialism, but the strengthening of foreign investment as an additional element for the development of the country.
Cuban economy needs to increase its levels over 20 percent, which would favor the growth of the Gross Domestic Product by five percent in a sustained manner. The law will also favor the introduction of capital and so contribute to count on two billion dollars annually, as a complement to the efforts being made by the country, he said.
However, the minister noted that the implementation of the law cannot be looked at separately from the complex situation of Cuba, a country under the US blockade, with debts and high financial risks, which causes investors to operate with some limits and with this in mind the law is crystal clear, attractive and transparent, Malmierca stressed.
The law prioritizes eleven sectors including agriculture, the food industry, the sugar sector, the metal and light industries, the pharmaceutical and biotechnology fields, energy, mines, wholesale market, tourism, construction and transportation
FrodosPet
(5,169 posts)2. Cuba Publishes New Foreign Investment Law
http://www.cmhw.cu/English/?p=947
Are they going to raise the wages above $25 to $30 a month? After all, one fifth of $25 is a five spot. Or does it not matter - the Cuban people only need mass armies of doctors, not clean healthy homes that are not about to collapse on them?
~ snip ~
Senior government officials have said Cuba needs over 2 billion dollars a year in foreign investment to revive its economy and attain its 7-percent growth target.
The new law offers investors substantial tax breaks and incentives, including a 50-percent reduction of the income tax rate and an eight-year tax waiver, which could be extended by the Council of Ministers.
It also provides foreign investors with a stronger legal framework, including non-expropriation guarantees, except for reasons of public utility or social interest, and then only with due compensation.
Foreign companies staff recruitment, barring management posts, will be carried out through a Cuban employment agency, which will be responsible for negotiating with the companies workers wages, which will be paid in Cuban pesos.
The agency will also charge the companies a 20-percent commission.
~ snip ~
Are they going to raise the wages above $25 to $30 a month? After all, one fifth of $25 is a five spot. Or does it not matter - the Cuban people only need mass armies of doctors, not clean healthy homes that are not about to collapse on them?