Cash payments limit - changes from 2022!
The government is constantly working to tighten the tax system. Many changes are being introduced as part of the Polish Deal. One of them is to be a new limit on cash payments. How much after the changes is it supposed to be?
Cash payment limit
Pursuant to Art. 19 of the Entrepreneurs' Law: "Payments related to the business activity are made or accepted through the entrepreneur's payment account, in each case when:
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another entrepreneur is a party to the transaction from which the payment results,
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the one-off transaction value, regardless of the number of payments resulting therefrom, exceeds the equivalent of PLN 15,000, while transactions in foreign currencies are converted into zlotys according to the average exchange rate of foreign currencies announced by the National Bank of Poland on the last business day preceding the transaction date. "
By the end of 2021, the limit of cash payments is PLN 15,000.
How much will the new cash payment limit be?
With the entry into force of the Polish order, the limit of cash transactions is to change. It will be reduced from PLN 15,000 to PLN 8,000. zloty. Therefore, any transaction above this amount should not be regulated with cash, if the taxpayer does not want to expose himself to negative consequences in this respect.
From January 1, 2022, the limit of cash payments will amount to PLN 8,000 due to the assumptions of the bill.
The objection to the new limit on cash transactions is expressed, inter alia, by The Office of the Ombudsman for Small and Medium-sized Enterprises, arguing that due to inflation, this limit should be raised, not lowered.
However, according to the National Bank of Poland, lowering the limit restricts the freedom of economic activity.
What are the sanctions when we exceed the cash payment limit?
Pursuant to Art. 22p (1) of the PIT Act and Art. 15d (1) of the CIT Act, entrepreneurs conducting non-agricultural economic activity may not include an expense in the part in which the transaction amount exceeding the limit of cash payments has not been made via a bank account as tax deductible costs. So:
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if the entire payment for the transaction for an amount above the limit of cash transactions was made in cash, then the entire expense is not a cost,
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cash payment for transactions up to the limit of cash transactions - is a tax cost.
