Less than a year after the significant changes to the tax treatment of employee stock and option schemes, another amendment has been introduced.

The current obligation to defer the moment of taxation is now to become only one of the options. As a taxpayer, the employer will be able to choose whether to tax the employee’s income from the acquisition of the share using the regime in force at the same time with deferral of the moment of taxation or to use the original rules in force until 31 December 2023. However, the proposed selection will require an active step on the part of the employer in the form of timely notification of the chosen intention by the 20th day of the calendar month following the month, in which the share or option is acquired. The notification applies not only to shares and options acquired after the effective date of this legislative change, but also to all shares acquired from the beginning of 2024, for which a special transitional provision is being prepared.

The draft is currently at 2nd reading and will most likely be adopted. The planned effective date will probably be 1 January 2025, but it is not clear if this wish will be fulfilled. Employers thus have until the entry into force to familiarise themselves in detail with the tax implications of their future decisions.

To ensure a smooth process if you choose either tax regime, we offer you the opportunity to attend our employment law breakfast on 8 January 2025, which will cover the topic of stock option plans.

The link to register is here: Employment Law Breakfast Training – Stock Option Plans – VOX Education