lei: Cash payments only up 3.000 euros from tomorrow (Wednesday).
Cash payments up 3.000 euros are prohibited from Wednesday, but payments to non-residents are allowed to 10 thousand euros, or the equivalent in foreign currency, according to a decree published Tuesday.
The decree published today in the Official Gazette, and which comes into force on Wednesday, It applies even to transactions already made, but not yet paid: “This law takes effect in respect of payments made after its entry into force, even if the transactions that gave rise to predate”, reads the articles of the law.
For non-residents in national territory, the payments threshold above three thousand euros and up to 10 thousand euros is only allowed if it does not act as entrepreneurs or merchants.
The new article of the General Law Tax, entitled “payment in cash ban”, begins to prohibit pay or receive cash in transactions of any kind involving amounts greater than or equal to 3. 000 euros, or its equivalent in foreign currency, and introduces new rules for non-residents and for some taxpayers.
value invoices payments less than 1.000 euros, or its equivalent in foreign currency, conducted by IRC taxpayers, and IRS taxpayers with organized accounts, now they have to “It is made by means of payment that allows the identification of the respective recipient, namely bank transfer, nominative check or direct debit”.
The ban on cash payments above three thousand euros does not apply to those who live outside of Portugal: “The payment limit (…) it's from 10. 000 euros, or its equivalent in foreign currency, whenever payment is made by non-resident individuals in Portuguese territory, provided that they act as entrepreneurs or merchants”, exceciona diploma.
The law also defines the method for calculating the payment amounts: “For the purpose of calculating the limits (…) are considered in the aggregate all payments associated with the sale of goods or services, if not exceed that limit if considered in divided doses”.
The law introduces yet another change to the current regime, to prohibit tax cash payment the amount of which exceeds 500 euros, and specifies that the ban on cash payment “shall not apply in transactions with financial institutions whose legal object understands the receipt of deposits, the provision of payment services, the issuance of electronic money or performing manual exchange operations, payments arising from decisions or court orders and excecionadas situations by special law.”
The decree published today amending the legal framework of the Tax Offenses, but keeping the penalty conducting cash transactions above the legal limit, with a fine of 180 euros a 4.500 euros, and eliminates the article of the General Tax Law which required value payment equal to or greater than 1.000 euros were made by means of payment that allows the identification of the respective recipient, namely bank transfer, nominative check or direct debit.
The law was enacted published today by the head of state last week, and approved by parliament in 19 July, based on PSD designs and BE.
