Moldovan Legislature Approves Cash Limitations to Combat Tax Evasion
Moldova's Legislature has given the green light to legislation imposing restrictions on cash transactions. The bill, passed in its second reading, aims to regulate cash flow in the economy and promote electronic transfers.
According to parliamentary sources, the move is intended to enhance transparency and security in transactions, combat tax evasion and unfair competition, boost digital economy growth, and facilitate swift payment solutions.
The new regulations will apply to all legal entities except public authorities and institutions. They will also affect non-commercial organisations, entrepreneurs, foreign entity branches, and individuals buying real estate or vehicles from private sellers.
Cash transaction limits, ranging from 100,000 lei monthly or annually, will vary based on payment frequency and category. For instance, cash payments for real estate purchases will only be accepted below 100 times the average monthly salary (approximately 1.37 million lei), and for vehicle purchases, below 50 times the average salary (about 685 thousand lei).
Furthermore, businesses are permitted unlimited cash usage for employee salaries, loan repayments, government transactions, tax payments, and fines. However, fees for electronic transfers are capped at 0.1% of the transaction amount.
Violations of cash transaction limits will incur fines ranging from 3% to 10% of the exceeded amount.
The legislation is set to come into effect on January 1, 2025.
Translation by Iurie Tataru
