On 1 September 2026, the Presidency of the Republic officially published two landmark legislative instruments: Law No. 6/2026, dated 10 April 2026, amending specific articles of the General Labor Law, and Law No. 8/2026, dated 30 June 2026, the General Law of Special Economic Zones (SEZs). The simultaneous enactment signals a coordinated push to modernize the labor framework and create a competitive investment environment through fiscal and regulatory incentives. The SEZ Law establishes the legal basis for designated zones with autonomous customs, tax, and regulatory regimes, while the Labor Law amendment introduces flexibility in hiring, working hours, and dispute resolution—key demands from the private sector.
Key Takeaways
- SEZ Fiscal Regime Now Law: Law 8/2026 grants qualifying SEZ enterprises a corporate income tax holiday (up to 10 years), zero VAT on intra-zone transactions, exemption from withholding tax on dividends, interest, and royalties paid to non-residents, and free repatriation of capital and profits. The law also creates a Single Window Authority to centralize licensing and compliance.
- Labor Flexibility Enhancements: Law 6/2026 amends the General Labor Law to allow fixed-term contracts for project-based work, extends permissible overtime limits, introduces mandatory mediation before labor court proceedings, and adjusts severance calculations. These changes reduce rigidities that previously deterred formal hiring, especially in construction, tourism, and manufacturing.
- Compliance and Governance Requirements: SEZ licensees must adhere to anti-money laundering (AML) standards, beneficial ownership transparency, and environmental safeguards. The Labor Law amendments require updated employment contracts and internal policies by 31 December 2026. Non-compliance risks revocation of SEZ benefits and labor sanctions.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement