Summary/Abstract: This paper identifies, selects and analyses the share of profit tax in the overall public revenue in the Republic of Serbia and its impact on the level of investment in companies. The aim of this paper is to analyse the economic signifi cance of profit tax of legal entities and the impact of the profit tax collection on the economic development of the country, creation of new jobs, increase of investment, maintaining the employment rate, rise of economic competitiveness and decrease of insolvency of the economy. The value of the paper mainly lies in laying emphasis on profit tax and its contribution to the increase of the public revenues and investment in companies, which facilitates better tax policy management and planning of its measures towards sustainable economic development. This analysis is based on the quantitative data of a large number of indicators.
