[01] P. N. Brusov, Applied Mathematics Department, Financial University under the Government of Russian Federation, Moscow, Russia. [02] T. V. Filatova, Public Administration and Municipal Management Faculty, Financial University under the Government of Russian Federation, Moscow, Russia. [03] N. P. Orekhova, High School of Business, South Federal University, Corporate finance, Investment and Taxation Laboratory, Research Consortium of Universities of the South of Russia, Rostov-on-Don, Russia. [04] M. A. Eskindarov, Financial University under the Government of Russian Federation, Moscow, Russia. [05] I. K. Shevchenko, Research and Innovation Projects, South Federal University, Rostov-on-Don, Russia. [06] V. L. Kulik, Management Department, Financial University under the Government of Russian Federation, Moscow, Russia.

Within investment models, developed by Brusov, Filatova, Orekhova earlier the influence of tax on profit rate on effectiveness of long–term investment projects at different debt levels is investigated. It is shown, that increase of tax on profit rate from one side leads to decrease of project NPV, but from other side it leads to decrease of sensitivity of NPV with respect to leverage level. At high leverage level L the influence of tax on profit rate increase on effectiveness of investment projects becomes significantly less. We come to conclusion, that taxing could be differentiated depending on debt level of investment projects of the company: for projects with high debt level L it is possible to apply a higher tax on profit rate.

Tax On Profit Rate, Long–Term Investment Projects, Effectiveness of Investment Project, Leverage Level, Brusov-Filatova-Orekhova (BFO Theory)

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