Trends in the personal income tax dynamics in 2011 – 2016

Personal income taxes are the main sources of different levels budget revenues in most developed countries. Despite rather significant fiscal role of PIT in Ukraine, its fiscal and regulatory potential is not fully realized. It is important to reveal the real trends in the dynamics of personal income tax revenues in the result of tax reforms of 2014-2016, and disclose the factors that determine them. In this publication, the legislation modifications in the individual income taxation and the changes in the ratio of PIT receipts and the basic macroindicators, as well as the determination changes in the distribution of PIT revenues between the State and local budgets has been systematized by the FEAO team. The revealed peculiarities has became the basis for further analysis of the fiscal and social effects of the PIT reforming in order to improve its mechanism.

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