New reporting obligation for third country nationals working in Sweden
On 1 August 2013 new rules based on an EU-directive was implemented in Sweden implying that an employer must notify the Swedish Tax Agency when third country nationals are employed for work in Sweden. A third country national is a national who is not an EU, EEA citizen, nor is a citizen of Switzerland. Additionally, qualified family members of any of these nationals are exempted from the new rules.
According to the new rules, it is the responsibility of the employer to verify the employee’s legal right to work in Sweden and to retain copies of the documents proving the employee’s right to work in Sweden for the duration of the employment, and a period of twelve months thereafter.
If an employer fails to comply with the new rules penalty charges may be levied and the right to receive governmental support may also be withdrawn for a period up to five years.
When the new rules were introduced, it was not clear whether the obligations would apply also to foreign employers. The Swedish Tax Agency has now clarified its position.
The Swedish Tax Agency’s view
The Swedish Tax Agency’s view is that also foreign employers are subject to the new rules and hence must fulfill the reporting obligation. The reporting obligation must be fulfilled irrespective of if the foreign employer has a permanent establishment in Sweden or not.
The new rules came into force 1 August and apply to all new employments which are entered from this date. The reporting obligation does not apply retroactively.
As the reporting is due the 12th in the month following the calendar month when the employment started, timing is crucial to comply with the new rules. To ensure compliance and avoid possible penalty charges, employers should immediately implement routines for the fulfillment of the reporting obligation.
The reporting is made on the form SKV 1160 Notification, Employment of a foreigner. There is no possibility to report online.
|Anna Sabelström Holmberg
+46 752 46 33 04
+46 752 46 22 36