On March 27, 2025, a law was announced in the Collection of Laws which will change the mandatory deferred taxation regime of income from employee stock options plans to an optional regime starting from April 1, 2025. Therefore, if you wish to utilize the rules of deferred taxation for income from employee stock options realized between January 1, 2024, and March 31, 2025, it is crucial that you notify the tax administrator by the end of May 2025.
Furthermore, on March 24, 2025, in anticipation of this amendment’s effectiveness, the General Financial Directorate (GFD) published a working version of the information on the financial administration’s website. This information addresses, among other things, the retroactive impact of the amendment on income from employee stock acquisition realized between January 1, 2024, and March 31, 2025.
According to this information, in cases where the taxation of employee stock options occurred at the time of acquisition during the period January 1, 2024, to March 31, 2025 (contrary to the legislation in force at that time) and the employer does not notify the intention to defer the taxation of these incomes by the end of May 2025, the financial administration will not seek to assess the tax for May 2025 (as stipulated by the transitional provisions of the amendment) during payroll tax audits. Similarly, in cases where employees are required to tax these incomes through their tax returns, the financial administration should not seek to assess the tax for 2025 (according to the transitional provisions of the amendment) if the incomes from stock acquisition in 2024 are taxed in the tax return for the year 2024.
However, we note that this is only a working version of the information and it is possible that the Czech Social Security Administration and health insurance companies will not issue similar statements confirming leniency during insurance premium audits. This GFD information is also not legally binding.
We have already informed you about these long-awaited changes in our article.
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