By Decree No. 350/017 dated 19/12/2017, the Executive Power not only regulated Arts. 35, 36 and 38 of the Law for Financial Inclusion but also deferred the entry into force of the aforementioned provisions for April 1st.
Briefly, Decree provides:
1. Restriction on the use of cash in operations greater than or equal to 40.000 IU:
The first article of the Decree, like Art. 35 of the Law, stipulates that the price of any operation or legal transaction cannot be paid with cash, whose total amount is equal to or greater than the equivalent of 40.000 IU (US$ 5.230 Approx.), taxes included. It then determines that the aforementioned restriction will also apply to commercial companies.
2. Means of payment admitted for operations greater than or equal to 160.000 IU:
The second article of the Decree provides, like Art. 36 of Law 19.210, that the payment of the price of any transaction or legal transaction, whose total amount is equal to or greater than the equivalent of 160,000 IU (US $ 20,921 Approx.), taxes included, can only be made through electronic means of payment or crossed deferred payment account payee checks.
By Decree No. 351/017 dated 19/12/2017, the Executive Power also regulated Arts. 40 and 41 of the Law for Financial Inclusion and postponed the effective date of the aforementioned regulations for April 1. In summary, the articles determine that:
1. Transfers and other business on real estate.
The first article of the Decree, like Art. 40 of the Law, determines that payment of any operation or legal transaction on real estate whose total amount exceeds 40.000 IU (US$ 5.230 approx.) including the Value Added Tax, must be fulfilled through electronic means of payment, common or deferred payment crossed account payee checks or crossed bills of exchange issued by a financial intermediation institution in the name of the purchaser.
2. Acquisitions of motor vehicles.
The second article of the regulation provides, in the same sense as article 41 of Law 19.210, that the payment of purchases of motorized vehicles, zero km or used, greater than 40.000 IU (US $ 5.230 Approx.), Including the Tax Added Value, must be met through electronic means of payment, common or deferred payment crossed account payee checks or crossed bills of exchange issued by a financial intermediation institution in the name of the purchaser.