Business #18 Legislative focus

Following the adoption of the new legal framework on foreign workers, the Romanian Ministry of Labour has issued the implementing rules. Employers are now required to use three official contract models: (1) service agreements with recruitment agencies, (2) placement contracts, and (3) individual employment contracts. These must include a firm job offer and be signed in advance of the immigration process. The rules also establish strict conditions on employer obligations, including recruitment and integration responsibilities, salary-related deductions, and compliance with official reporting requirements.

With this order set to soon be signed, employers will have to use mandatory standard contract templates when hiring foreign workers and ensure contracts are signed before visa issuance. Also, companies must comply with strict obligations on job offers, integration support, and limits on salary deductions for accommodation.

Romania could impose stricter rules on the deductibility of intra-group expenses for corporate income taxpayers, according to a new AUR-backed legislative proposal. The measure targets multinational groups, as interest on intra-group loans would be deductible only up to the average market rate plus 1%. At the same time, costs for management, consultancy, assistance, and intellectual property transfers within the group would become non-deductible. The proposed rules are set to apply from 1 January 2027.

Multinational groups may face higher taxable profits due to reduced deductibility of intra-group costs. Additionally, if the proposal is approved, companies will need to review financing and service structures within groups.

A new legislative proposal from POT MPs introduces a package of fiscal incentives and subsidies for employers who hire persons with disabilities. Employers would receive a 50% reduction in the work insurance contribution for each person with disabilities hired. This benefit would apply for a period of 24 months. Companies would also be able to fully deduct the costs of adapting workplaces such as assistive technologies and accessibility equipment. In addition, employers would receive monthly state subsidies between RON 2,500 – RON 3,000 per month.  An additional RON 5,000 bonus would be granted for each employee retained beyond 24 months.

Employers receive direct cost reductions via a 50% contribution cut and monthly subsidies of up to RON 3,000 per employee. Support is conditional on maintaining employment for at least 24 months and meeting accessibility and reporting requirements.