By Dr Robert Lewandowski, attorney at law (radca prawny) at Derra, Meyer & Partners in Warsaw
On 15 January 2017 new legal provisions were introduced in Poland according to which the maximum limit of cash business transactions was dramatically reduced from 15000 Euros to 15000 PLN1 (approx. 3700 Euros). These recent changes were inserted into the Polish Act on Freedom of Providing Business Activities and as a result, entrepreneurs will only be able to make or receive a cash payment totaling a maximum of 15000 PLN and could be penalized if they exceed this amount in cash within any one business deal. So far the aforementioned Act stated that payments wired between entrepreneurs via their bank accounts were compulsory in the event of transfers of amounts exceeding 15000 Euros. The recent changes – pursuant to the Polish legislator – strongly aim to reduce the grey market in Poland. Transactions made in foreign currency will be converted into Polish currency “PLN” according to the average rate of exchange rate set by the Polish National Bank published on the working day prior to the day of making the transaction. The new provisions also bring some changes with regard to the settlement of all payments over 15000 PLN, so therefore if an entrepreneur will comply with the new regulations and make payments over 15000 PLN in the form of bank transfers, then he/she will also be allowed to settle these payments as tax deduction taking advantage of this new payment system. It remains unclear as to why the Polish legislator limits cash business payments up to 15000 PLN and how these new rules will be enforced in daily business life.
1PLN refers to the Polish currency “Złoty”
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