Cool Company for Ework International
Welcome to Cool company, as an independent contractor working through Ework.
Who are we?
Cool Company is a part of Verdane Capital Holdings and has been operating as an independent contracting company (or umbrella payroll provider) for more than 10 years. During that time we have learned a great deal, which we then put into practice, and we are always keen to gain new insights into how we can be the best partner possible.
We currently operate in three countries where freelance and consultancy work through independent contracting is growing in popularity year on year. More than 80,000 freelancers, consultants, students, hobbyists and people with second jobs invoice for their services through Cool Company. A flexible and secure option – plain and simple.
Cool Company provide an Employed Umbrella payroll solution in Sweden, and we support contractors by processing payments, deducting taxes, and submitting these to the Swedish Tax authority. Along with this, we provide accident insurance, group life insurance and liability insurance for you during the assignment.
Mandatory steps:
- Ensure that you are entitled to work in Sweden (more info under section 1).
- Submit the proof of sent in application for coordination number or the final decision from the tax authorities to Cool Company (info@coolcompany.com)
- Apply for taxation document (Less than 6 months SINK; More than 6 months: Application for preliminary tax). Submit this to Cool Company (info@coolcompany.com)
- Submit ID06 application if you will visit construction sites.
- Register to get access, before your first visit the client site (see section 5).
Below you will find some information regarding being a contractor in Sweden.
1. Ensure your work permit
Note: You do not need to apply for a work permit if you are a citizen of an EU country.
Firstly, to work legally in Sweden, you will need a valid work permit. The process of obtaining a work permit can vary depending on your nationality and the type of work you will be doing. We recommend that you visit the Swedish Migration Agency’s website for more information on how to apply for a work permit.
2. Apply for a Swedish coordination number
If you don’t have a Swedish social security number or a coordination number, then you will need to obtain a Swedish coordination number. Coordination numbers are a way of identifying individuals who need to interact with Swedish public authorities or other parts of Swedish society but have never been listed in the Swedish Population Register. Coordination numbers are structured in a similar way to 10-digit personal identity numbers.
The Swedish Tax Agency is the public authority that reaches decisions about coordination numbers and issues them. Please note that salaries cannot be processed until you have obtained a Swedish Coordination number.
It can sometimes take a long time – up to eight weeks – for the Swedish Tax Agency to process these applications. In order to ensure that you can receive your salary as soon as possible, it is important to apply for coordination number in good time.
Disclaimer: If you move to Sweden and intend to live here for 12 months or more, you should register as a resident at the nearest office of the Swedish Tax Agency. Then you will instead receive a unique 10-digit personal identification number.
You’ll find the application here.
When you register for tax you apply for a coordination number in the same application (please see instructions below)
After submitting your online application, you must visit the Tax Office to identify yourself in person. This step only needs to be done once, ideally during the first week of your assignment in Sweden.
Please book an appointment at your closest tax office by clicking [https://ssc.nemoq.se/booking/booking/index/ssc].
Remember to bring your passport, a copy (digital or physical) of your employment contract, and a receipt of your submitted online tax application.
Important: A coordination number WILL NOT be issued without completing this step.
Please report once completed to your Cool Company contact person.
3. Taxation
If you live in another country and work in Sweden, you are subject to regular taxation in Sweden for income from work. Regular income tax in Sweden, is on an average rate of 30%. Cool Company Skandinavien AB can not be used in order for you to avoid paying taxes in Sweden.
While we are happy to provide general information about working and living in Sweden, we regret to inform you that we are unable to offer specific taxation advice. This is due to regulatory rules in Sweden that prohibit us from providing such advice without proper licensing and authorization.
The Special Income Tax for Non-Residents (SINK) is applicable if you are staying in Sweden for a total period of less than 6 months in a calendar year. It provides a flat tax rate of 25% on your income, regardless of how much you earn. However, if you stay in Sweden for an accumulated period of more than 6 months, you would normally be subject to regular Swedish income tax instead of SINK.
No Declaration Hassles: SINK taxation means you do not need to file a Swedish tax return, saving you time and paperwork.
Ideal for Short-Term Employment: Whether you’re on a temporary assignment or working part-time in Sweden, SINK simplifies taxation and makes it more efficient for non-residents.
The application form is here.
Once you have received this application back, submit document to info@coolcompany.com
SINK rates will only be applied upon approval from Skatteverket has been provided, until this time 30% tax rate will apply.
Use this form if you are not registered in Sweden but are staying in Sweden for a period of six months or longer and work here. The Swedish Tax Agency will not register a person from outside EU or EEA countries or Switzerland, a third country national, for work income unless he or she is permitted to work here. The application form is here.
Once you have received this application back, submit document to info@coolcompany.com.
Social security is 31.42% of the total timesheet value, which is mandatory to pay for when working in Sweden. You can pay for social security in your home country with an A1 form, which is applied for in your home country, and unfortunately not something that Cool Company can assist you with.
In cases where you hold a valid A1 certificate and the assignment does not exceed 24 months, no deductions for social contribution shall be made by Cool Company. Instead, you are responsible for paying the social contribution in your country of residence. In instances where you fail to pay the social contribution in your country of residence according to the A1 certificate, and the tax authorities in that country demand payment from Cool Company, then you will be obligated to pay the equivalent amount to Cool Company.
Please be aware that we can only apply social contribution offsets until the expiration date of your A1 certificate. Therefore, any salary disbursed after this date will have the regular social contributions deducted. To avoid this, it’s advisable to request an A1 form with a validity period extending beyond your anticipated last day of work, considering there might be a delay between your final working day and the salary disbursement. This procedure has been verified with our auditing firm and confirmed by the Swedish Taxation Authority.
Once you have received this application back, submit the document to info@coolcompany.com.
4. Time reporting & payments
Ework runs a Self-Billing system. This means that you do not need to send a separate invoice to Ework. Instead, you will report your worked hours in our system that will create an invoice, and once Ework pay us, you will get a salary paid out from Cool Company.
In the mentioned Self-Billing you will be able to see a summary of the reported hours, total amount, payment date and more. Different customers from Ework will have different payment terms.
5. Work Environment
No matter where you work, your work environment plays a key role in your safety and well-being. That’s why it’s important to understand your rights and responsibilities – as well as the shared responsibility between you, Cool Company as your employer, and the company where you perform your assignment. By staying informed, we can create a safe and sustainable work experience together. Read more about how we approach work environment matters and what you need to keep in mind.
6. Claiming expenses
Depending on how you are taxed for your income, you have the right to deduct some expenses you incurred in your assignment, if they are directly linked to the service you are performing. Please note that the Swedish taxation Authority is pretty strict in terms of what expenses you can deduct and which ones you cannot deduct.
If the expense is claimed through Cool Company, and you pay standard Swedish Social Contribution and Ordinary A-tax, then the expense will act as a tax shield, and you will get approximately 50% back of the original amount once you receive the payment from us.
This expense value (read 50 % estimation) decreases if you have an approved A1 certificate and/or pay less tax through e.g., SINK.
Note that the purchase date on the receipt needs to be at the same time-period as the assignment, meaning that you can’t claim old expenses as part of your assignment. For all expenses Cool Company Skandinavien requires:
- A Receipt indicating what item it refers to and
- A proof of payment, and
- That the expense can be tied to a salary that is to be paid to you, meaning that you cannot claim expenses if you don’t have an ongoing assignment. You have to add the expenses in the system yourself.
- Please send your expenses to partner@coolcompany.com. If the assignment provider will be reimbursing your expenses, please clearly specify which expenses are eligible for reimbursement and which are not in that email.
Claimable expenses with approved SINK decision (see section 3. Taxation) where the assignment is shorter than 6 months:
- Travel to and from Sweden and your home country: You can add expenses related to travel costs (such as public transportation, flight, and train tickets) to and from Sweden. You cannot deduct expenses related to driving a car. The expense can only be claimed for the trip related to the beginning and end of your assignment, thus not on a commute basis.
- Hotel/hostel stay/house rental while working in Sweden: You can claim the accommodation part through us. Ensure that you receive a receipt and payment proof on this expense.
- Safety clothes related to the assignment.
- Expenses tied to the specific assignment of non-reusable character (such as screws and other onetime items etc).
- Note: Seasonal transportation tickets, including annual passes, monthly passes, or other types of season passes, are not eligible for tax deductions, either in full or in part.
Please note that all expenses will be manually reviewed by our economy department to ensure compliance.
Claimable expenses without approved SINK and instead being taxed under regular income tax law (a-tax):
You can still claim expenses; however, the guidelines state that you must claim these as deductions through your yearly Swedish tax return instead of through your employer (Cool Company Skandinavien AB). Here are two of the more common deductions that you can potentially claim:
- One journey to/from home per week.
- Increased living expenses – Deduct what you have paid for accommodation. If you cannot prove the amount, you may deduct SEK 120 per day for business trips within Sweden for the income year 2022 (tax return 2023). If you have moved your whole family to Sweden, during the assignment, the guideline is that you can deduct the accommodation cost of the housing in your home country.
Please note that we cannot offer tax advice, and it is essential to refer to Skatteverket official website for the latest information and guidelines.
Here is a link to the website related to common deductions in the tax return, and we encourage you to read it.
These deduction examples listed above are based on a person from an EU-country outside Sweden that has accommodation in both Sweden and their home country and is working in Sweden on a temporary basis (usually an assignment less than 2 years).
Insurance
Having the right insurance as an independent contractor is often crucial when, as a private individual, you choose and compare who to use when you invoice without a company and corporation tax. With us it’s simple: when you register an assignment with us you are an independent contractor through us and you work under our company registration number and corporation tax, so it’s essential (and a good thing) that you’re insured. For you and for us.
With Cool Company you’re insured round the clock when you’re out working. We work with Movestic Liv & Pension for our personal insurance. The policies are valid in Sweden, Norway and the EU. Your insurance is always divided into two main parts – personal insurance, which protects you as an individual, and third-party liability insurance, which protects you should you cause an accident or injury while working on an assignment at your client’s site.
You are safe with our insurances
Sick Certificate for Sick Leave
If you become sick during your assignment, you need to report your illness to Cool Company on the same day you become ill. You can do this by emailing us at partner@coolcompany.se. You also need to inform us as soon as you know when you’ll be back to work.
If you are sick for more than seven days and can provide a medical certificate starting from the eighth day of illness, you are entitled to sick pay. The medical certificate should both confirm your illness and how it affects your ability to perform your assignment, as well as the duration of the sickness.
You can send the medical certificate by mail to our address:
Cool Company Skandinavien AB
Att: B2B
Tegnérgatan 2C
113 58 Stockholm
Living in Sweden
Update change of address
If you have a Swedish personal number, then when you move, you must report your change of address to the Swedish Tax Agency so that your address is correct in the population register. Reporting your change of address is free of charge and can be done quickly and easily using the Tax Agency’s e-service.
Report your change of address in advance or no later than one week after you have moved. Your new address will then apply from the day you move in. If you report your change of address more than one week after you have moved, your new address will apply from the day the report was received by the Swedish Tax Agency. Read more here.
Contact us!
If you have any further questions, please contact us:
Company address:
Cool Company Skandinavien AB
Tegnergatan 2C
113 58 Stockholm
Sweden
Org. number: 556432-8390