This research indicates the practical complexity of administering a PIT at the local government level. Hopefully, the reality of implementing such a PIT at the employer level will put a halt to this effort. However, the research needs to be extended to the fiscal impacts a PIT based on residence of the employee would have on the distribution of financial resources among local governments and the distortions that will result of implementing such a PIT in Ukraine. The PIT is not a particularly good local government tax source for all these reasons. There is no realistic or equitable basis to divide up the PIT of an employee between where the person works and where they reside. If there were, this would have already been implemented in international practice. The international practice is to apply the PIT to the place of employment, however, difficult this might be. The bottom line is that regardless of the difficulties identified by this study in collecting a PIT and even if they could be overcome, a method of applying a PIT based on dividing between the place of employment and place of residence where they are different locations will continue are not solvable in a fair and equitable manner.