Abstract:

This article aims to define the importance of personal income tax (PIT) for the performance of key tax functions in a market economy. The discourse is conducted in conjunction with presentation of its social, economic and budgetary importance, as well as taking into account its features. The aim of the article is to assess the degree of realization of two key functions, i.e. fiscal and redistribution in terms of personal income tax, and to determine to what extent, numerous amendments have influenced the ability to perform these tax functions. Results - personal income tax is important for the state budget and, due to its features, it is more adequate for the execution of non-fiscal functions than other taxes. However, measures aimed at the fulfilment of redistributive function should be strengthened. The study has been prepared based on the method of analysis of legal acts, analysis of the degree of implementation of tax functions, taking into account the characteristics of personal income tax based on statistical data, analysis of the literature in conjunction with the method of deduction.