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Hello, please, I'm about to be granted RSAs with a vesting period from a US company. I wonder what are all the tax implications of that for me as…

Hello, please, I'm about to be granted RSAs with a vesting period from a US company. I wonder what are all the tax implications of that for me as Czech resident living in the Czech Republic. Do I have to tax the RSAs as income (I guess according to §6 ?) when I 'buy' them for some arbitrary (lower than fair market according to the valuation of said company) value before the vesting begins? Do I have to tax them the same way when they vest? If yes, is there any strategy to push the tax duty just to the event of actually selling the vested shares and not tax them as income (because they could end up being worthless) but only tax the profit from the sale as capital gain (I guess according to §10). Thank you very much.

Tom

Answer to 1

Taxation of Reserved Stock Awards (RSA) from US company

12:48 12.11.2020

Hello Tom, first of all please ask your employer if the company RSA is not taxed in your payroll. Otherwise the income is taxable in your personal…

Hello Tom,
first of all please ask your employer if the company RSA is not taxed in your payroll.
Otherwise the income is taxable in your personal income tax return.
In a first stage you should tax a differnce between market price and vested price according
to Art.6 of Tax Law.

After that you can behave to the stocks standardly.
A capital gains are taxed according to Art.10 of Tax Law.

But the capital gains can be extempted from taxation provided that you keep the stock more than 3 years or
your income (total selling price) doesnt exceed CZK 100,000 per calendar year

Best Regards
Michael Hajek, Tax Advisor

Michael Haje

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