The significance of taxes is reflected in the socio-economic and political life of contemporary states. The purpose of taxes is manifested in the collection of income to cover expenses, and they appear as forced monetary contributions to the state. The tax that most affects the well-being of individuals and the community is the income tax. Income that is taxed according to the provisions of the Income Tax Act, according to the source of income, is income from self-employment, income from property and property rights, income from capital, income from insurance and other income. Income tax is finally determined on the basis of the annual tax return that the taxpayer must submit to the competent Tax Administration according to his place of residence or habitual residence. The annual tax return and the application of a special procedure depend on the realized sources of annual income, and taxpayers who submit the annual tax return are obliged to declare all realized annual incomes.