The cash has not gone completely into the past, but now it is being replaced by transfers. They transfer money both to private persons and companies because such transfer of funds is easier, more convenient and safer. What is more, now also indicated by law, because from the beginning of 2017, the limit of cash payments for entrepreneurs was in force.
Cash payment is less and less used, but it does not mean that it is still not selected. We transfer various amounts in both business and private life. However, when they are quite large and exceed the currently applicable limits, it is likely that the tax office will be interested in them.
Payment in cash from January 2017
From the beginning of 2017, the government decided to reduce the value of business transactions, which can be settled in cash. The change is quite big because so far the limit was 15,000 euros. In turn, from January 1, 2017, it was changed and for companies, it is currently PLN 15,000.
In accordance with the provisions of the Act on the freedom of economic activity, entrepreneurs must make or accept payments related to business activities using their bank account when:
** _ the party to the transaction from which the payment arises is another entrepreneur and
• one-time transaction value, regardless of the number of payments resulting from it, exceeds the amount or equivalent of PLN 15,000 **
In the case of transactions taking place in other currencies, the conversion of the transaction amount into PLN is made according to the average exchange rate of the National Bank of Poland on the last day of the month preceding the month in which the transaction took place.
What do entrepreneurs expose to when they perform operations in cash above PLN 15,000?
The aforementioned act indicates that an entrepreneur who runs a non-agricultural business activity will not be able to include in the tax-deductible costs transactions exceeding the amount of PLN 15,000, which did not take place via a bank account.
• if the payment in excess of PLN 15,000 has been made in full in cash, this expenditure does not constitute a full cost
• if the payment for up to PLN 15,000 has been made in cash, then it may constitute a tax cost
Limits on cash payments between private individuals In principle, there are no limits on cash payments between private individuals, however, we may be interested in the General Inspector of Financial Information and the tax office if we do not inform him about the amounts received.
The amounts of transfers above EUR 15,000 must be registered by banks. If we do not have confirmation of the legality of the money transferred, then the tax office may impose a tax of up to 75% on it.
Donations among loved ones, i.e. made by such persons as spouse, descendants, ascendants, siblings, stepfather, stepmother, are exempt from payment of tax – however, we must inform the tax office within 6 months on the appropriate form. This applies to both transfers and cash payments.