Limits to Cash

Law 70/2015 introduced substantial changes to the use of cash effective May 9, 2015. The limits on cash are as follows:

Transactions between economic operators:

For economic operators (legal persons, authorized legal persons, sole proprietorships, family businesses, freelancers) cash receipts are possible for a maximum limit of 5,000 lei/day for each invoiced transaction with another economic operator.

Cash payments to other economic operators are limited to 5,000 lei/day for each individual economic operator receiving payment and in relation to each invoiced transaction; the total ceiling (sum of all daily payments) is limited to 10,000 lei/day.

The rule expressly prohibits fractional cash receipts/payments in order to circumvent the 5,000 lei limit per invoiced transaction; for cash & carry operators, the limit is 10,000 lei.

Therefore, any payment over 5,000 lei (10,000 for cash & carry warehouses) referring to an invoiced transaction with another trader will necessarily have to be made by traced instruments (wire transfer etc).

Advances to employees for expenses to be reported (avansuri spre decontare)

The Law provides in this case a daily plafond of 5,000 lei for each employee (these payments also fall under the maximum daily plafond of 10,000 lei mentioned above)

Transactions between economic operators and individuals:

The above mentioned economic operators will be able to collect and pay individuals within the limit of 10,000 lei/day for each economic transaction and for each beneficiary/payer natural person (example the repayment of shareholder financing). Therefore, each unit economic transaction (single financing contract, invoice for services, invoice for sale of goods etc.) between economic operator and natural person exceeding 10,000 lei will have to be made for the amount exceeding the limit through traced instruments (wire transfer etc.).

Transactions involving the splitting of an economic transaction as a result of the prior contractual agreement to sell in installments are excluded.

Transactions between individuals:

Individuals with reference to the single economic transaction may collect and pay other individuals within the limit of 50,000 lei (example buying and selling real estate); fractional payments exceeding the 50,000 lei limit are prohibited.

Sanctions

Any violation of compliance with the limit on the use of cash is punished by payment of the 10% of the collection/payment that exceeds the limit. There is also a penalty of 3,000 to 4,500 lei for those who give discounts or otherwise engage in conduct that is allusive to the regulations in order not to exceed the limit.

Exceptions

The law stipulates that the cash limit does not apply in the following cases:

• Cash deposits into bank accounts;
• Payments of travel costs made as part of the service;
• Payments of taxes, fees, contributions and penalties due to the Romanian state;
• Withdrawal of cash from the bank account for the payment of wages and assimilated items;
• Cash deposits at ATMs.

We are at your disposal for any clarifications.