Amendments to the Decision on the form, content, and method of using payment order forms for executing payment transactions in dinars (hereinafter: “Decision“) have introduced two new payment codes for transactions related to the trade of goods and services, effective as of October 19, 2024.
In addition to the already existing payment codes, the following have been introduced by the mentioned Decision:
- Code 29, which pertains to Digital Assets – payments related to transactions involving virtual currencies, digital tokens, and digital assets that have the characteristics of financial instruments (including the payment of all commissions, fees, and other costs associated with these transactions), and
- Code 30, which pertains to Real Estate Transactions – payments related to the trade of various types of land (agricultural and construction land, forests, and forest land), buildings (commercial, residential, mixed-use, economic, etc.), and other structures, as well as specific parts of buildings (apartments, commercial premises, garages, and parking spaces) that can be subject to separate ownership rights.
The digit 1 will be added in front of the mentioned codes if the transaction is in cash, or the digit 2 if the transaction is cashless.
According to the Law on the Prevention of Money Laundering, transactions valued at 10,000 EUR or more are strictly limited for business entities, including situations where the amount from one transaction is split into several related transactions. Under this limitation, business entities are prohibited from receiving cash exceeding the legally prescribed maximum, and any transaction above this amount must be executed cashless.
The above represents an effort by the state to increase control and reduce the misuse of cash for illegal purposes, including money laundering, tax evasion, or the financing of criminal activities.
Payment codes describe the purpose of each payment, indicating what is being paid for and thereby allowing for the proper allocation of funds. For business entities, it is of great importance to be familiar with the system of activity codes, as even the smallest error when entering them in payment orders can lead to the determination of an incorrect tax liability for the taxpayer, among other potential issues.