The Law regulates non-cash settlements relating to transactions involving the transfer of goods and property, the use of goods and property, the performance of work and the provision of services, as well as salaries, scholarships, pensions, benefits, loans, representation expenses and business travel expenses. It also regulates non-cash transactions and other related matters.
The Law applies to individuals present in the Republic of Armenia, organizations operating in the Republic of Armenia, foreign organizations and their subdivisions operating in the Republic of Armenia, individual entrepreneurs, notaries and advocates.
The Law applies to transactions concluded in writing or orally within the Republic of Armenia, as well as transactions concluded and actually paid for outside the Republic of Armenia.
From 1 July 2022, payments and settlements exceeding AMD 300,000 for the transfer of goods or property, the use of goods or property, the performance of work or the provision of services, the payment of passive income as defined by the Tax Code of the Republic of Armenia, and the granting and receipt of loans must be made in non-cash form where one of the parties is an individual.
Payments and receipts under any transaction between foreign organizations and individual entrepreneurs, notaries, advocates, organizations or individuals of the Republic of Armenia must be made in non-cash form, regardless of the payment arrangement, if the payment is made or received within the Republic of Armenia.
Failure to comply with the restrictions on making or accepting cash payments established by the Law on Non-Cash Transactions results in a fine imposed on the taxpayer equal to five percent of the amount exceeding the permitted cash payment limit (the amount of the violation), subject to a minimum of AMD 500,000 and a maximum of AMD 2,000,000.