Update September 2024: Earlier this year, we reported that the income tax treatment of deferred share awards (RSUs, PSUs, etc) in the Czech Republic changed, but that the social security at that stage remained unchanged, thus resulting in different dates for income tax vs. social security. In the meantime, however, social security rules changed as well, such that social security (if applicable) will now be due on the same date(s) as income tax. For further information, please do not hesitate to contact us.

Update April 2024: Under new tax legislation in the Czech Republic in effect since 1 January 2024, income tax on deferred share awards (PSUs, RSUs etc.) does no longer apply on the vesting / share transfer date, but will be deferred until the sale of shares (or, if earlier, the date when the employee leaves the company or the country), but maximum 10 years from the delivery date. If plan costs are borne by the local Czech employer, social security and health contributions, however, still apply on the vesting / share transfer date.