As we previously informed you in our article, starting from April 1, 2025, the regime for deferred taxation of ESOP income has become optional. If an employer wishes to allow employees to benefit from the deferred taxation rules for such income — including the possibility of reducing the taxable income amount if the value of the shares decreases between acquisition and the deferred taxation date — a notification obligation must be fulfilled by the 20th day of the month following the month in which employees acquired such shares.

Therefore, if your employees acquired such income in April 2025, the deadline for submitting this notification is already May 20, 2025.

For the period from January 1, 2024, to March 31, 2025, it is necessary to submit the notification retroactively by May 31, 2025. Otherwise, income realized during this period will become taxable in May 2025.

There is no mandatory form for fulfilling this notification obligation; however, on May 7, 2025, the Tax Administration published the anticipated optional form on its website, which can be used for this purpose. (It is initially available in MS Word format, with a PDF version likely to follow. At this time, preparation of an EPO (Electronic Filing for Tax Administration) version is not expected.)

It had previously been discussed that if foreign companies not registered for tax in the Czech Republic are required to submit a notice of intent to apply the deferred taxation regime, they would likely need to do so at the Tax Office for the Capital City of Prague – Local Office for Prague 1. However, the newly published optional form indicates that the Tax Administration will also accept submissions by such foreign companies to the Tax Office for the Ústí nad Labem Region, or to the tax office with local jurisdiction over the legal employer of the respective employees in the Czech Republic.

We will be happy to assist your company in fulfilling this notification obligation.