Abstract
This paper observes the effectiveness of any taxation system, the measurement of the effective tax rate on profitability investment and its implementation on Albania. Focusing on the taxation system, there are going to be some analysis and studies of the actual Albanian tax system and on the other side give information about the domestic and foreign investment in our country. The businesses are always under pressure from the tax system or any government fiscal policy. The estimated model will be offered by all fundamentals of regression analyzes which will identify the relation between the total investment (in % of GDP) in Albania and the tax rates (as percentage of profit) in order to show if there is any correlation between those two variables. All the data’s are taken by World Bank and INSTAT for the period of 2000 to 2012. After reasonable analysis of pros and cons on any effectible side, they will demonstrate that there is weak relationship between the total investment and tax rate in Albania. DOI: 10.5901/ajis.2013.v2n11p116
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