ISSN: 1648 - 4460

International Journal of Scholarly Papers


Transformations  in
Business & Economics

Transformations in
Business & Economics

  • © Vilnius University, 2002-2008
  • © Brno University of Technology, 2002-2008
  • © University of Latvia, 2002-2008
The Influence of the Tax Factor on Investment Effectiveness in Selected Central and Eastern European Countries
Józefa Monika Gryko, Marta Kluzek

ABSTRACT. Taxation is one of many factors which can influence the choice of the geographical location of foreign direct investments. The significance of this factor has grown in parallel with the growth of globalisation. Before 2004, many new EU countries carried out tax reforms, especially reforms of corporation tax, in order to attract FDI. Certain elements of tax structure have an influence on investment effectiveness. Factors like the rules of depreciation, possibilities and rules of estimating losses in time and eventually the rate of tax have the influence on the size and setting in time of all investments. The aim of this article is to demonstrate, using the example of a simulated investment project, how the construction of corporate tax in selected CEE countries influences the effectiveness of investment measured with classical discount methods (NPV - Net Present Value, IRR – Internal Rate of Return).

KEYWORDS: tax competition, foreign direct investments, corporate tax, CEEC.

JEL classification: H2, P33, G3, P2.

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Scholarly papers Transformations in Business & Economics
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