A reminder from fiscal officers

The Main Department at the Ministry of Revenue and Duties in Kyiv city reminds that settlements between legal entities as well as transactions made by natural persons, which are resulted from entrepreneurial venture related operations, are to be made without cash. Unless otherwise provided by the legislation, the settlements between the said entities can be also made in cash.

The resolution of the NBU’s Board dd. 06.06.2013 № 210, on setting cash payment ceiling, stipulates the limitations to cash payments done during a day, which are as follows:

- for settlements between enterprises (entrepreneurs) during one day which amount makes up 10 000 hryvnias;

- for settlements between a natural person and enterprise (entrepreneur) during one day for goods (works, services) in the amount of 150 000 hryvnias;

- for settlements between natural persons under purchase–sale agreements, which are subject to notarial validation, in the amount of 150 000 hryvnias.

Natural persons have the right to make settlements which  amount exceeds 150 000 hryvnias, through transferring the money from the current account to another current account, crediting an account and/or transferring the money to the current accounts  (including notarial deposit in local currency on a particular current account).

Accordingly, the limitations on cash payments embrace those done at the cash desks of enterprises (entrepreneurs) by citizens, as well cash paid out by the enterprises (entrepreneurs) to the citizens.

Meantime, the limitations do not cover:

1) settlements made between enterprises (entrepreneurs) and budget and government trust funds;

2) voluntary contributions and charitable aid;

3) allowances given to cover business trip expenses.

The amounts of fines imposed for breach of the cash settlement discipline are specified by Directive of the President of Ukraine, on fines imposed for breach of norms managing cash flows, dd. 12.06.1995 № 436/95 (hereinafter – Directive № 436). Along with that, Directive № 436 does not set out any liability for breach of law as regards exceeding the limits set on payment in cash.  

In case of cash payments made by the economic entities which amount exceeds the cash ceiling, such payers will be brought to criminal responsibility in compliance with the norms set out in the Code of Administrative Violations.

To sum up, pursuant to article 16315 of CAV the said violations entail imposing a fine on a natural person – entrepreneur from 100 up to 200 non-taxable minimum income of citizens (1700-3400 hryvnias). If a person has been imposed an administrative penalty during a year for similar violations, the next fine amount extensively grows – from 500 up to 1000 non-taxable minimum income of citizens (8500-17 000 hryvnias).