Naslov
ACCOUNTING RECORDING OF CHANGES OF INCOME TAX IN REPUBLIC CROATIA AND THEIR IMPACT ON PERSONAL CONSUMPTION

Autori
Miljak, Toni ; Grubišić, Anita ; Mijatović, Eva

Izvornik
21th International Scientific Conference on Economic and Social Development –“Managerial Issues in Modern Business” (1849-7535) 1 (2017), 1; 508-514

Vrsta, podvrsta i kategorija rada
Radovi u časopisima, članak, znanstveni

Ključne riječi
accounting recording, budget, income tax, personal consumption

Sažetak
The most important income of each country are taxes. Income tax, together with excise duty, profit tax and value added tax make up the majority of the country's tax revenue. Since the professional and political discussions give to the income tax gives (too)much attention, it is subject to frequent changes. The goal of changes in personal income tax is to increase personal consumption, which makes 60 to 70% of GDP, which results in an increase of GDP. The Croatian tax system distinguishes several categories of taxes: state taxes, county taxes, city or municipal taxes, joint taxes, gambling profit tax and gambling bonuses, as well as fees from the established value of the prize pool funds. Income tax falls into the category of common taxes, ie that tax is partly part of the state budget, part of the counties budget and the city/municipalities or prat of the city/municipality budget. The Law on Financing the Units of Local and Regional Self-Government determines exactly in which proportions income tax is distributed. Thus, 60% of income refers to the income of the city / municipality, 16.5% represents the share of the county while the share for decentralized functions is 6%, the share of the call for decentralized assistance calls for 16%, and the share of assistance for projects co-financed by the European Structural and Investment funds 1.5%. It is also important to note that cities, municipalities and counties (including the City of Zagreb), which, according to special laws, finance decetralized functions, have the right to an additional income tax share of 1.9% (primary education), 1.3 % (secondary education), 0.8% (social welfare) and 1% for health and public fire brigade units. Any change in personal income tax should be communicated to the accounting departments of the company so that there will be no mistake when calculating and recording the obligations resulting from employee salaries calculation. The purpose of this paper is to compare income tax changes over the last five years in Republic Croatia and to show the accounting recording thereof, with an analysis of the impact on personal conspumtion of the changes carried out.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija, Interdisciplinarne društvene znanosti

POVEZANOST RADA