A template form of a notification on deferring the taxation of an employee’s income in the form of share acquisition or an option for acquisition of a share under employee stock and option plans
The Financial Administration of the Czech Republic has published a non-compulsory form that may be used for the purpose of submitting a notification on deferring the taxation of employees´ income under employee stock and option plans (ESOPs). For practical reasons, for the time being, the form has been published in MS Word format. Subsequently, in cooperation with the Ministry of Finance of the Czech Republic, the form will be published in a standard format and placed among other forms issued by the Ministry of Finance of the Czech Republic (section "Tax forms").
Deferring the taxation of an employee´s income in the form of share acquisition or an option to acquire a share under ESOPs is the choice of an employer as defined by the Income Taxes Act (please see further). Under section 6(17) of the Income Taxes Act the tax deferral is achieved only if the employer notifies relevant tax authorities of this intention.
Pursuant to section 6(2) of the Income Taxes Act, the term “employer” is defined as a person who has provided an employee with non-cash income in the form of a share in a corporation or an option to acquire such a share under ESOPs (which means that in the case of foreign ESOPs the deferral of income taxation will often be reported to Czech tax authorities by a foreign entity and not by a legal employer of employees).
More detailed information can be found on the website of the Financial Administration of the Czech Republic 2025 | Informace, stanoviska, sdělení | Zaměstnanci - zaměstnavatelé | Daň z příjmů | Daně | Daně | Finanční správa (in the Czech language only).
