The maximum values of cash payments companies and individuals in Romania can legally make in a single day could be reduced. The Ministry of Finance is currently analyzing introducing a new ceiling of RON 5,000 per day (just over EUR 1.100 at today's rate) for cash payments by companies to other companies or individuals, which would be half the current limit, according to Mediafax, quoting market sources.

Firms would also be limited to a maximum of RON 1,000 (EUR 221) in a single cash payment to one individual per day, five times lower than the current legal limit. This will  not apply to salary payments and other staff related payments.

Currently, the total value of cash payments a day cannot exceed RON 10,000 (around EUR 2,200), while the threshold for one cash payment is RON 5,000.

The Ministry claims the lowered maximum limits would reduce tax evasion and money laundering, especially in certain areas more prone to tax evasion.

editor@romania-insider.com