Amendments to the Tax Code introduced by Federal Law No. 214-FZ dated 26 July 2026 (effective 1 September 2026) have modified the rules for tax registration of separate subdivisions (obosoblennye podrazdeleniya) under Article 83. Previously, a company with multiple branches was required to register each subdivision with the tax authority at its location, but the head office could designate a single tax inspection for consolidated tax accounting. The new legislation grants organizations the right not only to select the tax authority for registration of a separate subdivision but also to voluntarily deregister a previously chosen tax authority and switch to another, provided the subdivision’s location falls within the jurisdiction of the new inspection. This change aims to reduce administrative burden for businesses restructuring their geographic footprint.
Key Takeaways
- Unified Registration Option: Companies may now register all separate subdivisions located within a single federal subject (region) with one inter-district tax inspection (IFNS), regardless of municipal boundaries. The application (Form No. 1-Учет) must be submitted to the chosen IFNS within 30 days of the subdivision’s creation or the law’s entry into force for existing subdivisions.
- Deregistration Procedure and Timing: To switch tax authorities, the taxpayer files a deregistration notice (Form No. 1-Учет/Снятие) with the current IFNS and a new registration application with the target IFNS simultaneously. The deregistration takes effect on the first day of the month following the month of submission. During the transition, the taxpayer must maintain separate tax accounting for the period before and after the switch to avoid double reporting or gaps.
- Impact on Regional Tax Allocation and Audits: The choice of registration authority determines which regional budget receives the corporate profit tax allocated to the subdivision (per Article 288). Strategic selection can optimize regional tax contributions. Moreover, the registered IFNS gains jurisdiction for on-site audits of that subdivision. Taxpayers should align registration decisions with their internal control framework and audit risk appetite, as inspections vary in enforcement intensity across regions.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement