In countries where there are instabilities in tax laws, investors have difficulties to understand the tax system and therefore they will be more discouraging to establish new investment. I believe, that this concern more the foreign investors than the domestic ones.

All the best

 Foreign investors are interested in large part by the economic and political stability in the country rather than zero taxation. According to Piatkowski, M. and Jarmuzek, the zero CIT in Moldova was mot likely to re-direct FDI flows in the region. “To attract FDI, Moldova—and other countries in the region—should focus on improving its business environment, which—despite recent reforms—lagged behind most its regional peers as reflected in World Bank Doing Business 2008 report (drop from 90 to 92 place relative to 2007 report) and the World Economic Forum 2008 survey (drop from 86 place last year to 97 this year). FDI is also not likely to be affected because the current effective tax rate for most foreign companies in Moldova taking advantage of the generous tax exemptions is already close to zero. “ Fore more info see Piatkowski, M. and Jarmuzek, M. Zero Corporate Income Tax in Moldova: Tax Competition and Its Implications for Eastern Europe. MFI Working Paper WP/08/203, August 2008. https://www.imf.org/external/pubs/ft/wp/2008/wp08203.pdf  

Thanks Souhirand Diana,

Doing Business makes a “theoretical investment” of a pot business. Many of the activities that the hypothetical firm does are similar more to one multinational subsidiary than a typical local investor. In my thesis, I perform a GARCH model with information about tax changes and the volatility of aggregate investment in Argentina with quarterly information. I found that the changes (measured in the pages added in the official bulletin in each quarter) are significant and are correlated negatively with the volatility of the aggregate investment.

Investors fear uncertainty more than anything else. That is why, for instance, organized crime is so armful for the economy.  Changes in tax regulation can add a relevaqnt form of uncertainty to the expected results of the investment. Therefore, frequent chhanges in the tax code can discourage investors. 

Thanks Luciano,  Measuring "uncertainty" through the pages of the tax changes or the SD of taxation on GDP have been very clear indicators.  I tested the impact on the investment volatility of a new page in the tax code. I found that every page added increases the deviation of the aggregate capex.  I also found that the countries with a higher tax collection volatility have a lower investment on GDP.

I feel your results are very interesting and that the Italian policy makers should read them.

Thanks again Luciano. I hope to contribute in the debate of tax policies not only in my country but also in Italy,,,

https://www.researchgate.net/publication/305451240_Adoption_of_e-Government_Services_Exploring_the_Case_of_Electronic_Tax_Filing

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