When concluding financial transactions, counterparties often require to indicate the bank's checkpoint through which the payment will pass. This is a nine-digit code assigned to each business organization.
How PPC stands for
KPP is an abbreviation that is used to designate the code of the reason for registration. This is a nine-digit combination that complements the TIN (individual tax number) and contains information about the basis of tax registration. The procedure and specifics of assigning a checkpoint are specified in the order of the Federal Tax Service of the Russian Federation No. ММВ-7-6 / 435 "On Approving the Procedure and Conditions for Assigning a Taxpayer Identification Number". The code is assigned to all commercial organizations, with the exception of individual entrepreneurs.
The first two digits indicate the code of the subject of the Russian Federation in which the organization was registered. The next two numbers indicate the number of the tax office that registered the organization. By the fifth and sixth characters of the checkpoint, you can find out the reason for registering the institution. As they can be used not only numbers, but also any letters of the Latin alphabet. The final three characters mean the serial number assigned to the organization when registering with the tax office.
The need to obtain a checkpoint is due to the fact that in addition to having an individual tax number, any organization is obliged to provide citizens and tax authorities with open information about the procedure for its registration and the main direction of activity. All this is encrypted in the registration reason code.
It is also worth noting that a separate checkpoint is assigned to each separate division of the organization, which simplifies their identification. It is not uncommon for different companies to have the same registration reason code. This is perfectly acceptable and means that they were registered with the same tax office and on similar grounds.
KPP of credit institutions
The code of the reason for registering credit institutions is often not indicated in their main details. The banks themselves explain this by the fact that most payment documents do not need to indicate the checkpoint. Nevertheless, some counterparties require filling in a full list of the organization's details, so to find out the code, you need to contact one of the bank branches.
The KPP of individual credit institutions may differ from the corresponding codes for other institutions. This applies to those banks that are large taxpayers. They are assigned an additional code in accordance with the place of tax registration. The first two digits of this combination are always 99. Legislation obliges large taxpayers to indicate KPP in documents related to tax calculations at the federal level, as well as payments to the budget.
