On 25 September 2026, the Ministry of Finance launched public consultations on the draft Action Plan for Reducing Undeclared Work in the Construction Sector, scheduled for finalization by 30 September 2026. The plan addresses widespread informal employment in construction, estimated at 35% of the sector’s workforce, and aligns with the European Platform tackling undeclared work. The consultations involve social partners, industry associations, and the State Labor Inspectorate, with the aim of adopting the plan by Government Decision in Q4 2026.
Key Takeaways
- Mandatory Electronic Registration and Reporting: The plan proposes mandatory electronic registration of all construction workers on a national platform before commencement of work, coupled with real-time reporting of contracts and payroll data to the tax and social security authorities. Non-compliance will trigger automatic fines of up to 50,000 MDL per undeclared worker.
- Joint Inspections and Supply Chain Liability: The State Labor Inspectorate, State Tax Service, and National Social Insurance House will conduct coordinated inspections targeting construction sites. Principal contractors will be held jointly liable for tax and social contribution debts of subcontractors, extending liability throughout the supply chain.
- Incentives for Compliance and Whistleblower Protection: Companies demonstrating full compliance for 24 consecutive months will benefit from reduced inspection frequency and expedited VAT refunds. The plan includes anonymous reporting channels and legal protection for whistleblowers reporting undeclared work.
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