An amendment to the bill changing the taxation of income from employee share and stock option plans was passed by the lower house of Parliament on December 20, 2024. More information on the amendment can be found in our latest article.
During the deliberations, the transitional provision for past situations, such as for shares granted in 2024, was significantly changed.
The proposal now contains a consistent approach for the case of the taxation of shares already allocated, where the moment of taxation is not deferred, with the moment of payment of the insurance premiums.
This should mean that if an employer provided shares in, for example, March 2024, this income should be taken into account in the employee’s salary sometime in March/April 2025 (depending on the speed of the rest of the legislative process), unless the employer decides to take advantage of the deferral of taxation in line with the legislation valid for the year 2024. All income tax, social security and health insurance contributions would then be paid on this income in that month.
We will continue to monitor the situation and keep you informed in case of any further changes. For more information do not hesitate to contact our team.