As of January 1, 2024, tax for income tax purposes at the earliest of: (a) the end of the employment relationship; (b) the company enters into liquidation; (c) an individual ceases to be a Czech tax resident; (d) the transfer or sale of shares; (e) exercise of the option (but only if option is transferable); (f) exchange of the shares where the total nominal value of the shares changes; or (g) 10 years after the date of the acquisition of the shares or award.  Tax at exercise for social insurance purposes. In both instances, taxable amount is the spread at exercise. 

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Generally allowed, if subsidiary reimburses parent.

Written agreement strongly recommended.

Additional requirements apply if Company recharges costs of awards to executives or board members.

Reimbursement triggers social insurance contributions and withholding/ reporting obligations.

Income Tax:
No, unless the local subsidiary reimburses the parent.

Social Insurance Contribution:
Generally, no, unless the local subsidiary reimburses the parent and is required to withhold income tax.

No securities law restrictions or obligations apply.

Non-transferable stock options are not considered a public offering of securities for purposes of the EU Prospectus Regulation.

Reporting requirements apply to the acquisition of securities and related payments and receipts between foreign exchange residents and foreign exchange non-residents.

Generally not, provided employee signs agreement acknowledging discretionary nature of the plan.

Works council notification/consultation obligations apply if subsidiary bears the costs of awards.

Also, if subsidiary bears the cost of the awards, prior approval of the subsidiary's supervisory board or board of directors is required to offer awards to executive officers or directors of the subsidiary. In addition, "performance of functions" agreement with executive officers or directors of subsidiary receiving equity should reference equity grant, be approved by shareholder of the subsidiary and be signed (in hard copy) by individual.

The EU Council Directive 2000/78/EC prohibits age discrimination. Most, if not all, countries have adopted local rules implementing this Directive, which may have an impact on design of equity and other incentive plans in the EU, particularly on age or age and service provisions which give different treatment (e.g., accelerated or continued vesting) for those meeting the criteria.

A valid basis is required to collect, process and transfer personal data.

The EU Data Protection Regulation ("GDPR") became effective in all EU/EEA countries on 25 May 2018. It introduces new requirements and increases the powers of data protection authorities, rights of data subjects and potential penalties for non-compliance. Accordingly, companies should review their approach to data privacy compliance in the context of equity plan administration and consider on which basis they may be able to rely to collect, process and transfer data.

Registration and notification requirements with local data privacy authorities may also apply.