This study compares the impact of tax-book procedures on net profit margin (NPM) in Albania, a country with a more lenient rule of law, and Germany, with stronger rule of law. More precisely, we compute the intensity, direction, and influence of eight variables on the net profit margin (NPM) by reviewing current research and conducting an empirical analysis of book-tax differences in both countries. The analysis uses a sample of 250 observations for each country from 2018 to 2022. Multiple regression is used to compute the influence of variables on NPM. The findings show the importance of law enforcement in relation to the impact of tax practices on profitability. We discover that in Albania's case the influence on profitability is greater than in Germany's. Such findings are explained by the fact that Albania has a higher level of corruption; nonpayment of taxes, and many gaps in accounting standards when it comes to tax requirements in computing taxable income. Finally, we give recommendations to Albanian officials, regulatory agencies, and businesses to reduce incentives for tax evasion, improve financial reporting reliability, and promote transparency.