Mandatory bank account / Cash payment limit

Compensation for the increase in the value of RMMG
17 February, 2022
Withholdings at Source – Payment Guides
17 February, 2022

The subject is not new and has been under scrutiny by the Tax Administration, at least since 2005. The law has undergone some changes and updates, the latest being August 2017.

The opportunity of this communication has to do with our perception that our customers do not always frame the movement of their payments and receipts, including Supplies, following the General Tax Law, which we now summarize:

Article 63-C

Bank accounts exclusively used for business activity

IRC taxpayers, as well as IRS taxpayers who have or should have organized accounting, are required to have at least one bank account through which payments and receipts relating to business activity must be handled exclusively. developed.

All transactions relating to loans, other forms of loans and advances from shareholders, as well as any other transactions to or in favour of taxable persons, must also be made through the account or accounts referred to in paragraph 1.

(Repealed by Law No. 92/2017 – 22/08).

The tax administration may access all information or banking documents relating to the account or accounts referred to in paragraph 1 without depending on the consent of the respective holders.

Article 63-E

Prohibition of cash payment

It is prohibited to pay or receive cash in transactions of any nature involving amounts equal to or greater than €3,000 or its equivalent in foreign currency.

Payments made by taxable persons referred to in paragraph 1 of article 63ºC concerning invoices or equivalent documents with a value equal to or greater than €1,000, or its equivalent in foreign currency, must be made through a means of payment that allows the identification of the respective recipient, namely bank transfer, nominative check or direct debit.

The limit referred to in paragraph 1 is €10,000, or it’s equivalent in foreign currency, whenever the payment is made by individuals who do not reside in Portuguese territory and provided that they do not act as entrepreneurs or traders.

To calculate the limits referred to in the previous numbers, all payments associated with the sale of goods or provision of services are considered in aggregate form, even if they do not exceed that limit if considered in a fraction.

The cash payment of taxes whose amount exceeds €500 is prohibited.

Finally, it is important to know that carrying out cash transactions above the legally established limits is punishable by a fine of €180 to €4,500.

Making bank statements available to Accounting is fundamental and results from the Law.

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