Abstract

This paper analyses the personal income tax as an indirect tax which is part of the tax code of Republic of Croatia. The personal income tax encompasses all persons which are subject to the personal income tax. The paper defines and reviews types of income considering the sources of income: employment income, income from self-employment, property and property rights income, capital gains income, insurance income, other incomes and methodologies used to determine the taxes due and tax periods. The paper also details the receipts which are not considered income, tax loss and personal deductions which are not part of the taxable income.