Razvoj poreza na dohodak u Hrvatskoj: reforme i promašaji

The paper examines the development and effectiveness of the changes in Croatian personal income tax (PIT). Firstly, the paper analyzes the changes in the tax base and the nominal tax burden according to the sources of income for the period since 1994. when the comprehensive PIT was introduced till the end of year 2010. The second part contains the empirical research for the period since 2001 by 2010, where the average and effective tax burden according to the sources of income is analyzed, the effectiveness of changes in the PIT is tested, as well as the integration of the certain sources of income in PIT system. The survey results indicate a lock of consistency in the PIT development, the tax burden is unequally allocated among the observed sources of income as their lack of integration in the PIT system. Moreover, the findings presented in the paper raise the question of the comprehensive PIT existence because of the fact that the existing PIT system is almost completely based on the taxation of the employment as the only source of income.