Science – Future of Lithuania / Mokslas – Lietuvos Ateitis, Vol 7, No 2 (2015)

Influence of Personal Income Tax on the Municipalities’ Income

Neringa Slavinskaitė (Vilnius Gediminas Technical university, Lithuania)
Orinta Kreizaitė (Vilnius Gediminas Technical university, Lithuania)
Monika Stonytė (Vilnius Gediminas Technical university, Lithuania)


The article analyzes the impact of Lithuanian Republic personal income tax changes on municipality budget and the factors influ -encing that change. This area of Lithuanian practice is evaluated, applied methodical positions are discussed, an overview of other countries’ practical experience and theoretical work is presented. Personal income tax in European countries is one of the main taxes, but the existing framework of personal income tax and the taxation policies, as defined in each country, influence the policy of personal income tax in various European countries. The study showed that the total amount of collected personal income taxes increases each year (2009 – 2,411 millions Lt., in 2013 – 3,723 millions Lt.). The analysis showed that the personal income tax collection is influenced by the average wage (correlation coefficient – 0.72), number of employees (correlation coefficient – 0.87) and tax­exempt income (ratio or correlation – 0.72).

Article in: Lithuanian

Article published: 2015-05-28

Keyword(s): personal income tax; municipalities budget; municipalities revenue.

DOI: 10.3846/mla.2015.752

Full Text: PDF pdf

Science – Future of Lithuania / Mokslas – Lietuvos Ateitis ISSN 2029-2341, eISSN 2029-2252
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 License.