KPP is necessary because some firms are registered with several tax inspectorates: not only at their legal address, but also at the location of separate divisions, real estate and taxable vehicles.
Since everyone should have one INN, the tax authorities have introduced an additional code – KPP (Код причины постановки на учет).
In addition to taxpayer identification number (INN) in connection with registration with different tax authorities on the grounds provided for by the Tax Code of the Russian Federation, Tax Registration Reason Code (KPP) is used for organizations, which consists of the following sequence of numbers from left to right:
code of the tax authority that registered the organization at its location, location of a separate division of the organization located in the Russian Federation, or at the location of its real estate and vehicles, as well as for other reasons established by the Code (NNNN);
Registration reason (PP);
serial number of registration with the territorial tax authority for the relevant reason (XXX).
The structure of the registration reason code is a nine-digit digital code: NNNNРРХХХ. Example: 123456789