Requirement of a personnel register in the construction industry to also apply to property owners

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PwC-skatteradgivning-House-2-solid_0002_burgundyBeginning at year-end, new regulations will apply stipulating that personnel registers are to be kept to identify all personnel working at a given building site. These rules will be introduced in order to create more sound competition within the construction industry and will imply that both developers, that is, property owners, and contractors undertaking construction work, maintain such registers. Compliance with these new rules will demand new, clearly defined routines, technical systems and knowledge of the rules.

The new rules will cover all building sites where construction work is undertaken. Smaller projects with total costs less than four price base amounts will be exempt, as well as private individual’s building projects.

For the developers, usually the property owners, the new rules imply the obligation to provide equipment making it possible to keep a personnel register. According to the specified requirements, this equipment is to make possible the electronic registering of personnel working at a given site and that the Tax Agency can have access to the information in the case of control measures. In addition to this, a requirement will be introduced implying that developers are to notify the start and completion of a construction project to the Tax Agency, including details as to where and when the construction activities are expected to take place. There is some possibility for the developer to transfer its responsibility to a business entity which is independently responsible for ensuring that the work with the personnel register is executed. However, this is only possible in the case of turnkey projects, that is, when all of the commitments are transferred, completely, to the construction company. With shared construction projects, the responsibility cannot be transferred.

As regards construction companies, these regulations imply the obligation to maintain a personnel register at all building sites, according to the rules described above. The information in the personnel register is also to be made available to the Tax Agency and property developer.
Compliance with the regulations will be checked by the Tax Agency and in the case of errors or deficiencies in the personnel register, a control fee will be levied.

Comments

The new regulations imply the increased control of individuals working at the construction sites and sub-contracted personnel and trainees are also covered by these regulations. Control fees will be charged in the case of deficient compliance. In order to avoid these fees, a system is required making it possible to maintain an electronic personnel register. Depending on the scope of the work, different systems will be required –everything from apps to major entry-exit control systems – where, probably, the property owner will need to provide the system.

Workshop with industry experts

Take the opportunity to update yourself on how these new regulations will be put into effect, how other companies are responding to these new rules, the systems they have chosen and the routines they will introduce in their operations. After the year-end, we will invite you to workshops at a number of locations throughout the country where you can receive information to help understand the rules, receive insight into the practical handling of these issues and obtain information as to how you can identify the right system for your operations.

Do you have any questions on corporate taxation?

Marcus Lindqvist

Marcus Lindqvist

Marcus Lindqvist arbetar på PwC i Göteborg med företagsbeskattningsfrågor och är särskilt inriktad på skattefrågor för fastighets- och byggbolag.
010-212 40 39
Skatterådgivare, PwC
0709-29 13 81
Marcus Lindqvist works at PwC in Gothenburg with corporate taxation, specialising in tax issues for real estate and construction industry.
010-212 40 39

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