Communist Cuba is the latest country to plan a Special Economic Zone, part of an economic model blasted by critics for creating a race to the bottom on wages and corporate taxes. Raul Castro, Cubas president, signed law 313 in September creating a special development zone in the port of Mariel, 45km west of the capital, Havana, where foreign companies will be able to transfer their profits abroad without paying the usual taxes or tariffs. Laws governing the project come into effect in November although its unclear exactly when the facility will be operational. I understand in Maribel bay there is going to be a tax holiday for 10 years, Clive Vokes, director of Market Scoping International, a niche advisory firm specialising in foreign direct investment, told Al Jazeera. I think the announcement is consistent with a trend that has been gathering momentum for the last 20 years. One-hundred percent foreign ownership will be allowed for firms operating in the zone, and contracts will be extended to 50 years, up from the current 25. The body will be governed by a special office in the Cuban government and foreign operators will also be exempt from tax on the use of the labour force, property tax and local sales tax, according to a legal brief for prospective investors prepared by Jesus Bu Marcheco at the University of Havana. aljazeera/indepth/features/2013/10/cuba-open-tax-free-special-economic-zone-2013102019632154300.html
Posted on: Thu, 24 Oct 2013 22:51:09 +0000
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