If you own a company in Bulgaria or have got future business plans connected to the Country, you may find this information helpful.
For limiting the so called 'grey sector' in
the Bulgarian economy, the Council of Ministers proposed an Act,
promulgated and entered into force in February 2011.
The Limitation of Cash Payments Act
requires any payments on Bulgarian territory to be made by bank transfer, if they are:
- of an amount equalling to or exceeding BGN10,000;
- of an amount below BGN10,000 but part of aggregate contractual amount equalling to or exceeding BGN10,000.
When the above pointed payments on the
territory of Bulgaria were determined in foreign currency, the
exchange rate quoted by Bulgarian National Bank (BNB) for the day of
payment, should be applied.
The limitation has exceptions, which
briefly are:
- cash withdrawals from or cash deposits to own payment accounts;
- cash withdrawals from or cash deposits to accounts of direct relatives, spouses;
- cash transactions in foreign currency when performing main scope of such business activity;
- operations over banknotes and coins, where BNB is involved as a party;
- labor remuneration payments according to the Labor Code.
For breach of Limitation of Cash
Payments Act, physical persons are liable for a penalty of 25%
of the made payments. The sanction for legal entities is
determined of 50% of the effected payments. In case of
repeated breach within 1 year period, the sanction is double.
If a Limited Liability Company has made
several meetings during the year in connection with a temporary need
of additional funds and each separately recorded decision doesn't
exceed the amount of BGN10,000, but overall for the year the total
amount exceeds BGN10,000, is it possible the payments to be made in
cash, or is it absolutely compulsory by bank transfer?
Since it's a question of independent
written decisions, resulting from separate meetings of the General
Assembly, would be considered that the restrictions of cash payments should
not act here, i.e. that payments, under BGN10,000 each, could be made in cash. Of course, any
circumvention of the law, such as when early in the year was clear Ltd needed funds in the amount of all given during the year
additional contributions, by the reason there were no other sources to
obtain these funds within the same year and appeared serious doubt
that decisions had been made deliberately so that each additional
contribution to be under the restrictive threshold, would be considered
as intentional law circumvention.
Няма коментари:
Публикуване на коментар