Limitations on Cash Transactions

 

A new Law on Noncash Transactions has been adopted, which limits cash transactions. 

Below we provide a brief description of major issues regulated by this Law:

  1. Maximum amount of monthly cash transaction by registered taxpayers has been limited at the following amounts:

    - 30 000 manats for VAT payers or simplified taxpayers in the trade and/or catering industry with a turnover of 

    more 200 000 manats for a period of consecutive 12 months;

    - 15 000 manats for other taxpayers.
     

  2. While it is not explicitly stated in the Tax Code, the Ministry of Taxes repeatedly expressed a view that the above limitations 

    only apply to payments and withdrawals by taxpayers, rather than receipt of funds.

  3. Certain payments irrespective of their amounts are required to be made by a noncash transfer, including salaries 

    (except taxpayers in retail trade, catering and services industry with with a turnover of less 

    200 000 manats for a period of consecutive 12 months), loans, payment of interests insurance payments, education tuitions,

    payments to tourism agencies etc.

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