Regional taxes on companies : overview.

Regional taxes are imposed by the laws of the Subjects of the Federation under limitation determined by the federal laws. Federal taxes contribute not only to the Federal Budget but also to regional and local budgets. Consequently, the allocation of taxes of a multi-regional corporation among the regions is very important.

For tax regional allocation purposes taxes of a Russian company are apportioned among the regions based on the relative book value of production assets and the number of employees (or payroll) of the head office and trades.