Restrictions on cash payments
The aim of the Act No. 394/2012 Coll. on Restrictions on Cash Payments is to combat tax fraud and evasion by means of prohibiting cash payments in euro or in another currency, where such payments exceed certain limits. As a general rule, the act prohibits cash payments in excess of EUR 5 000. Cash payments of up to EUR 15 000 are only be permitted between natural persons not registered as sole traders.
The prohibition also applies to the transfer or the receipt of cash abroad where it relates to an agreement implemented in Slovakia and where the transferring or receiving party has a permanent residence, temporary residence or tolerated stay, or a registered office, plant or place of business in Slovakia.
The act also contains a list of exemptions from the prohibition. In principle, the abovementioned limits do not apply where the party making the payment is the State or another public authority or where there is a compelling reason for the exemption (i.e. cash payments in a time of crisis, war, and state of war, state of emergency and emergency situations etc.).
Infringement of the prohibition under the draft law will be without prejudice to the validity of the act of law underlying the cash payment. However, infringement thereof constitutes an administrative offence for which a fine of up to EUR 150 000 should be imposed.
The act entered into force on 1 January 2013.