The Romanian Parliament has taken an important step toward introducing a tax mechanism designed to reward employees through participation in company profits. A proposed amendment to the Fiscal Code would allow certain companies to grant employees amounts representing up to 15% of the gross profit from the previous financial year, benefiting from a tax treatment distinct from that applicable to salary income.

Under the current version of the proposal, such amounts would qualify as “income from other sources” and would be subject to a 10% income tax rate, with the health insurance contribution capped. The measure could represent a significantly more tax-efficient alternative to traditional bonuses.

The facility would be available exclusively to companies meeting certain compliance and financial stability criteria, including audited financial statements, recorded profits, and full payment of outstanding tax obligations. With respect to eligible employees, the proposal provides, among other conditions, a minimum employment period of 12 months and the absence of shareholder or director status.

The initiative could have a meaningful impact on employee retention and incentive policies, providing companies with an additional tool to align employee interests with the financial performance of the business. At the same time, the practical implementation of this mechanism will largely depend on the methodological rules to be issued by the Ministry of Finance.

The final form of the legislative proposal and the specific implementation conditions remain to be monitored closely, given the significant interest this measure may generate among both employers and employees.