Business #21 Legislative focus

Government’s draft bill introducing salary transparency rules has been formally registered in Parliament after being taken over by lawmakers from USR, PNL, PSD and UDMR. Originally prepared by the Government to transpose the EU Pay Transparency Directive (2023/970), the proposal was moved to Parliament following the change in government. The bill would require employers to provide salary information to job candidates, ban questions about salary history during recruitment, and give employees the right to request information on pay levels and average remuneration by gender. It also introduces reporting obligations for employers with at least 100 employees and measures to address unjustified gender pay gaps.

Employers would need to review recruitment processes, salary policies, job grading systems, and confidentiality clauses related to pay. Companies with at least 100 employees would face new reporting obligations and may be required to take corrective action where unjustified pay gaps are identified.

Romania has a new state aid scheme that provides grants or tax credits for companies making initial investments of at least RON 50 million in eligible manufacturing activities. With a total budget of RON 5.3 billion, the scheme targets up to 200 beneficiaries and supports investments in both tangible and intangible assets. The decision approving this state aid scheme was adopted last week by the Executive and published in the Official Gazette.

Manufacturing companies planning major investments can access state support for projects of at least RON 50 million. Businesses must provide at least 25% co-financing, meet environmental performance criteria, and comply with long-term monitoring and reporting obligations.

The Finance Ministry has issued a draft new procedure for obtaining advance individual tax rulings (SFIA), which allow taxpayers to obtain confirmation of the tax treatment applicable to future transactions. The draft procedure replaces the current framework and aims to simplify the application process following practical difficulties encountered under the existing rules. The new framework would also remove the current requirement to submit requests at least 90 days before the planned transaction. This order is yet to be published in the Official Gazette.

Companies would be required to provide information on the planned transaction, the tax treatment sought, and the relevant legal basis, while the tax authorities would follow clearer review and rejection procedures. The new procedure reduces administrative requirements but maintains application fees of EUR 5,000 for large taxpayers and non-residents and EUR 3,000 for other applicants.

The second draft order issued last week by the Finance Ministry sets out the expenses that qualify for the additional 50% tax deduction available to companies that list their shares on a regulated market or a multilateral trading facility. It clarifies that the incentive would cover a wide range of listing-related costs, including legal and advisory services, investor relations activities, stock exchange fees, financial audits, and central depository services. The deduction would apply starting from the company’s decision to pursue a listing, but no earlier than 1 January 2026. In this case as well, the order is yet to be published in the Official Gazette.

Companies planning an IPO or stock market listing could benefit from an additional 50% tax deduction on eligible listing and compliance costs. Businesses will need to separately track and document eligible expenses to support the tax deduction.