New obligations for multiple workplaces

Until recently, branches with one, two, or even four employees could operate quietly under the umbrella of the head office, but 2026 begins with a clear message from the legislator. It says that, in essence, a single employee is enough to make life more complicated. Of course, this is not the official wording, but the practical effect supports this conclusion.

The legislative amendment regarding the new legislation has a direct impact on companies, non-governmental organizations, and public institutions that carry out activities through branches. The new rule reduces the minimum number of employees required to register a branch as a payer of salaries and income similar to salaries from five employees to just one.

The amendment changes a threshold that has been, over the years, a reasonable compromise between fiscal control and economic reality. Until December 31, 2025, the tax registration obligation only applied if the branch had at least five employees.

From January 1, 2026: any place of business, regardless of the legal form of the parent entity (commercial company, NGO, public institution), which has at least one employee, must:

• be registered for tax purposes
• become a payer of salaries and income similar to salaries
• be registered with the competent local tax authority

The real impact of the law is felt in day-to-day operations, as there will be an increase in administrative burdens. Each place of business with one employee means separate management of reporting obligations, higher indirect costs (accounting, tax consulting), additional time allocated by the finance and accounting departments, increased risk of errors, penalties, and repercussions on operational flexibility.

From the authorities’ point of view, there are several very clear reasons for the change:

• increased control over local wage income;
• more accurate correlation of taxes and duties with the actual place of business;
• consolidation of local budgets through more accurate taxpayer records;
• reduction of “gray” areas where economic activity is dispersed but fiscally concentrated at the registered office.

In other words, the state wants to know exactly where work is done and where salaries are paid — even if it is a single employee.

To avoid blockages or penalties, it is recommended that the entities concerned:

• inventory all workplaces with employees

• analyze the need to maintain certain structures

• prepare the registration documentation in advance

The new legislative provision confirms an already known trend: the administrative tolerance threshold is decreasing, and fiscal responsibility is becoming increasingly fragmented. A single employee can trigger obligations that, until recently, were reserved for larger structures.

The irony is that, in an era of digitalization and promises of debureaucratization, the solution chosen remains a classic one: more forms. For companies, however, the message is clear: in 2026, even a single employee will matter, fiscally speaking.