New legislation regarding the termination of the 183-day rule in the case of work under the direction and control of the economic employer.
Economic employer concept was introduced in Swedish legislation on 1 January 2021 regarding income taxation for temporary work in Sweden. The legislation means that the 183-day rule ceases to apply to posted workers from foreign companies who have hired / lent labor to companies operating in Sweden.
The definition of hired / loaned labor is when the employee’s work is performed at the workplace under the direction of the client in Sweden with responsibility for the place where the work is performed and also makes work tools and materials available to the foreign company’s employees.
It is then, in practice, only foreign companies with their own management of the employees in the workplace, with responsibility for the place where the work is performed and who make work tools and materials available to the employee as then the employee can be exempted from income taxation in Sweden on the 183-day rule. However, this presupposes that the foreign company does not have a Permanent establishment in Sweden in accordance with the tax agreement between Sweden and each company’s home country.
However, the absolute majority of foreign companies that send their staff to Sweden do not do so with their own management of employees in the workplace or are responsible for the workplace where their employees perform work. ID06 then consequently has the condition for issuing ID06 cards to the foreign company’s employees for longer than 25 days that the application for special income tax (for stays in Sweden less than 6 months), or preliminary A-tax (for stays in Sweden exceeding 6 months) must be done at the Swedish Tax Agency via their digital registration function, see links below.
When the application to the Swedish Tax Agency is completed, a receipt will appear on the screen and the company must save and attach it together with the A1 certificate when ID06 card order for its employees.
Links to the Swedish Tax Agency’s registration:
Application for special income tax for non-residents | Skatteverket
Notification of preliminary income tax | Skatteverket
Request for exemption for the projects for which the 183-day rule may apply
The foreign companies that operate in Sweden with their own management of employees in the workplace and responsibility for the place where the work is performed and make work tools and materials available to their employees can then request an exemption for ID06 cards to be issued with 183 days validity to their employees for a specific project.
The foreign company then needs to send in the construction contract / agreement that they have drawn up with their client in Sweden. It must be possible to verify in the contract writing that the foreign company itself leads the employees in the workplace and is responsible for the place where the work is performed and also makes work tools and materials available to the employee.
The application for exemption must be sent with the attached construction contract / agreement to: email@example.com