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In March 2022 I purchased some stock awards from my employer (private US company). These were purchased at a lower price than the fair market…

In March 2022 I purchased some stock awards from my employer (private US company). These were purchased at a lower price than the fair market valuation of the company, so I need to pay income tax (§6) on the difference between purchase price and fair market value. The purchase was carried out in USD but to calculate the difference for tax I need to convert this to CZK. What exchange rate should I use for this conversion - the exchange rate on the day of purchase, the exchange rate applicable for March or the uniform exchange rate applicable for 2022? (The latter uniform exchange rate is the most unfavorable).

James

Odpověď na 1

Re: Exchange rate for share purchase

11:24 07.02.2023

Dear James for the calculation you can choose between using a daily exchange rate on the date of purchase (published by Czech National Bank) or…

Dear James

for the calculation you can choose between using a daily exchange rate on the date of purchase (published by Czech National Bank) or uniform exchange rate valid for whole year 2022 (published by Czech Ministry of Finance)

Best Regards

Michael Hajek, Tax Advisor

Michael Hajek

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