Not long ago, construction companies received a notice from the Tax Department 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 firm, 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 the work on the site themselves.
The system developers are planning to allow registration via a mobile application, but this feature is still in the status of a potential option.
Essence of the Registration System
The new rules will apply to construction sites that:
— start after 01.10.2023;
— were started earlier, but the expected completion date is later than 01.10.2024.
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 Tax Department;
— 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 Tax Department 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 Tax Department’s website.