In this paper we present the theoretical framework, which can be used to examine the potential impact of the taxation system on the accumulation of physical capital in Russia. The modified version of M. King and D. Fullerton microeconomic simulation model of marginal effective tax rates (METRs) is applied to Russia in order to examine incentives provided by three different Russian tax legislations to save and invest in the private non-financial corporate sector. Changes in treatment of interest payment deductibility, in the rates and methods of depreciation of assets, in personal income taxation, as well as some other details of taxation were taken into account. METRs computed for investment projects financed by domestic households through bank loans under the old Tax Laws are not that different from the new Tax Code. They may be considered average by international standards. Under the new Tax Code, we observe a drastic reduction of the effective tax burden on the corporate level and a substantial increase of the tax load on interest income on the personal level. Results may be different when investment projects are financed out of retained earnings or through new share issues.