Subject. The article discusses a model to evaluate the performance of investment projects taking into account taxation in the context of inflation. Objectives. The aim is to develop formal tools for investment project efficiency evaluation to unveil the impact of various taxation schemes on project performance under main types of inflation. Methods. The study draws on methods of systems analysis, economic-mathematical modeling, financial mathematics, statistical economics, and mathematical analysis. Results. The paper provides a detailed analysis of the impact of inflation on tax payments under various tax regimes when evaluating the investment project performance. I developed a method to calculate indicators of project performance under the main types of inflation, using an analytical model that considers tax expense under various tax treatment. Conclusions. The analytical model enables to elaborate the generalizing record of formal tools for investment process efficiency evaluation as applied to the specifics of tax payments in the investing activity of some enterprises. Calculations of investment project efficiency in the conditions of inflation in nominal and real cash flows are not equivalent because of the existence of non-indexed taxes and amortization charges. When calculating in real prices, it is necessary to consider this adjustment.
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