The Swedish ID06 system is mandatory on almost every construction site in Sweden. A worker can not enter the construction site without it. But it is usually not easy to get the ID06 cards issued. However, with professinal advice and proper planning, the obstacles can be overcome.
What is ID06?
Due to Swedish tax legislation that was implemented in 2016, every construction site in Sweden must have an Electronical Identification System that tracks all workers at the site. There are numerous providers of such identification systems, but ID06 is definitely the biggest provider in Sweden.
ID06 is installed in the gates to a construction site, which means that only workers that have ID06 cards can enter the construction site. Therefore, it is very important that every employee has a personal ID06 card, before starting to work at a Swedish construction site. Otherwise - the workers can not enter the construction site.
What are the requirements for the employer to get ID06?
There are a number of requirements, that need to be fulfilled, in order to have a ID06 card issued. First and foremost, the employer of a worker has to be approved for Swedish F-tax. Now you probably wonder what this F-tax thing is? Basically, it is a tax registration that a company or sole trader can do, with the Swedish Tax Agency. The F-tax registration imply that the company or sole trader will have their invoices paid fully, without withholding tax, from their Swedish clients. Read more about Swedish F-tax here.
What are the requirements for the employee/worker to get ID06?
Firstly, a worker needs to have a valid A1 certificate, in order to have a ID06 issued. A copy of an application for A1 can also be used in some cases.
Secondly, the worker must have a Swedish so-called "Coordination Number" or "Personal Number" for the ID06 card to be issued. The coordination number is a personal identification number, that is issued by the Swedish Tax Agency (Skatteverket). If the worker does not have a coordination number, an ID06 card can be issued - but only with the validity of 25 days, at a maximum of 3 issues. Therefore, a worker without a coordination number, can only have ID06 for 75 days (3x25). This is of course a problem in many cases. Personal numbers are only issued for persons living permanently in Sweden, and will lead to a obligation to file a Swedish tax return. A personal number should not be applied for by a person that only work temporarily in Sweden.
In some cases, however, the 183-day rule can apply, which means that the worker do not need to have any coordination number or personal number, to be granted ID06. A manual application for a exception is needed, to benefit from this possibility. We can take care of this application.
How to get a Swedish coordination number for ID06?
There are different ways to get a coordination number. The most usual way, is for the worker to apply for "SINK-tax" - the Swedish non tax resident tax regime (25 % flat tax). Also, a coordination number can be issued if the worker applies for "A-tax", the tax regime for Swedish tax residents (30 - 55 % progressive tax).
Applying for SINK-tax or A-tax, can be problematic however, because the SINK-tax and A-tax will lead to the worker having to pay taxes in Sweden on their salary. Also the employer must withhold Swedish preliminary tax, and pay this to the Swedish Tax Agency - which is a very heavy administrative obligation. In order to ensure that no unnecessary taxes are applied for, or are paid, a foreign company should seek advice from a Swedish tax lawyer. Please reach out to us if you want to get ID06, without signing up for unnecessary Swedish taxes.
If a worker has applied for A-tax or SINK-tax, a ID06 card with validity of three months can be issued.
For workers with a valid Swedish coordination number, ID06 cards with validity up to 24 months can be issued. Therefore, it is very important to get coordination numbers for your workers, if you run a business that will do a project at a Swedish construction site with ID06. We can help you with this.
Summary - requirements for ID06
The employer must be approved for Swedish F-tax
The worker must have a Swedish Coordination Number
The worker must have an A1 certificate
Getting the coordination number can be complicated, since it can trigger many obligations for the employer, and also trigger Swedish tax for the worker. TaxHelpSweden can assist your company with all requirements.
Reach out to us if you want help with getting ID06 for your employees, without having to pay unnecessary taxes or administrative obligations. We guide you through ID06, Swedish tax law, and other rules in Sweden - making sure that you can do your project in Sweden in a optimal way.
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