Prezident podepsal novelu týkající se zdanění tzv. ESOPů

President signs amendment regarding the taxation of ESOPs

The Prague Castle officially announced that the president signed a bill yesterday regarding the taxation of employee stock and option plans (“ESOPs”). We have informed you about this topic multiple times, most recently HERE. This "new-old" regulation allows employers to revert to rules that generally work better in an international context, particularly to prevent double taxation for employees. At the same time, it significantly reduces the administrative burden for employers as payers of tax and lowers the risks of tax assessments due to misjudgments regarding the timing of taxation.

The legislative process, which has been quite intense, is nearing its conclusion, with only the publication of the amendment in the Collection of Laws remaining. The law will take effect on the first day of the following calendar month, likely coinciding with the April Fools' Day, April 1, 2025.

Companies, including foreign ones, that provide this type of benefit should familiarize themselves with the details, opportunities, and limitations that this amendment brings. We will continue to monitor the impacts of the regime effective from January 2024, which may still pose practical challenges despite the new regulation.

For more detailed information, please contact the authors of the article or the EY team you work with.

Authors:

Michaela Felcmanová

Adam Linek