1st of September 2023 the rules changed regarding coordination numbers issued by the Swedish Tax Agency. What do these rule changes entail? How will it impact expatriates?
Practical challenges with the new rules
From the 1st of September 2023 the rules regarding coordination numbers issued by the Swedish Tax Agency have changed. The new rules entail the introduction of different status levels, with which a coordination number can be issued and which the Swedish Tax Agency will share with other public authorities.
People who are physically present in Sweden but not to be entered into the population registry will receive a coordination number from the Swedish Tax Agency. It is now solely the Tax Agency’s responsibility to ensure that the identity of the person who is appointed a coordination number is correct.
The Tax Agency will require a person who applies for a coordination number to physically appear at an office of the Tax Agency with a valid documentation for ID validation. For people residing outside of Sweden it is possible to visit a Swedish embassy or consulate for ID validation. The Tax Agency will summon the applicant to appear at the Tax Agency for this purpose.
How will this come to affect expats?
Three status levels have been introduced for coordination numbers, “confirmed”, “likely” and “uncertain”. To receive the status “confirmed”, an ID validation by means of a personal visit to the Tax Agency, alternatively a Swedish embassy or consulate, is mandatory. If the applicant has not personally appeared for ID validation within the specified timeframe, the Tax Agency will take a decision based on the received documents.
Based on our understanding the status level a coordination number receives is not relevant for the PAYE reporting process, but mainly for other authorities. What we however can see as a possible effect of this change is that the processing time of the application might be somewhat extended compared to previously. However, the time lag can be reduced if the person quickly appears at the Swedish Tax Agency for ID validation.
Provided that our customers send in complete and accurate documentation and attach the correct appendixes, the tax agency will process the application and take a decision to issue a coordination number, yet without the personal meeting with the tax agency the level “certain” cannot be given. The status “likely” or “uncertain” will be most likely be given if the application and all documents are complete and accurate.
If you need any help or guidance regarding the new rules, please feel free to contact us at Expat Payroll.
Aspia will continue to closely follow any new developments regarding coordination numbers and can offer to assist clients with further rule changes as they come into force.
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