Not long ago, construction companies received a notice from the Estonian Tax and Customs Board regarding new worker registration requirements that will come into effect starting October 1st of this year. In this newsletter, we have prepared a brief overview of the main requirements.

Let’s start with the most important point:

Anyone who performs any work on a registered construction site must have a unified chip card and must register their time on-site (“IN-OUT”).

It’s possible that your company is not listed as a construction company, but if your company accepts an order for certain types of work at a registered construction site, you must provide your workers with chip cards for logging working hours at the site.

The only exception is transport workers who deliver materials to the construction site but do not participate in on-site work.

System developers are planning to allow registration via a mobile application, yet this feature is still only a potential option.

Essence of the Registration System

The new rules will apply to construction sites that:

— start after October 1, 2023;

— were started earlier, but the expected completion date is later than October 1, 2024.

Registration requirements apply to construction sites where:

— work lasts more than 30 working days and at least 20 people are present on-site at the same time OR

— the total volume of the project exceeds 500 person-hours.

General contractor:

— submits the construction site and subcontractor data to the TTKI system before the start of construction (at least 3 days in advance);

— ensures the availability of the necessary electronic system for worker registration on the site;

— submits the system data to the Estonian Tax and Customs Board;

— retains the data for the entire duration of the work on the site.

Subcontractor:

— confirms the completion of the work (i.e. the data provided by the general contractor);

— registers the data of their employees who are performing these tasks in the information system;

— provides their workers with chip cards for site access;

— informs employees about the registration rules for the site.

The chip card given to the worker remains with them and can be used in the future on any registered construction site under any employer.

Orders for the production of chip cards will be fulfilled by the company HANSAB AS. Several companies collaborating with the Estonian Tax and Customs Board plan to provide registration services in the TTKI system. Once the development of the electronic registration system is completed, information about these services will be published on the Estonian Tax and Customs Board’s website.