SIGNIFICANCE OF SHARED TAXES IN THE TAX SYSTEM OF THE REPUBLIC OF CROATIA

Current tax system of the Republic of Croatia can be viewed through three fiscal levels and fiscal decentralisation is very much in motion. Which sources of fiscal revenue, in what capacity and in what way to distribute are the main problems that all federative states encounter frequently. However, states that are not federative, but have developed system of regional and local self-government encounter the same problems because of the high level of decentralisation of public functions. One of the benefits of fiscal decentralisation is to draw attention to the problems concerning revenue collection or the lack of it when the local and regional self-government units are in question. Tax systems of modern countries are using a large number of tax forms, which differs from country to country. The Republic of Croatia has adopted solutions that are used by the majority of European countries. Each fiscal level has its own revenue to collect, especially tax revenue. But one cathegory of tax revenue stands out shared taxes. The revenue collected from shared taxes is divided between two or more fiscal levels. The paper will present importance of satisfying public needs in terms of counties, cities and municipalities through a way of collecting tax revenue derived from shared taxes