Authors: Natalya G. PROKHOROVA Postgraduate of State and Municipal Finances Dept.

Abstract: Economic development of regions and districts of a country is the basis for economic growth of the entire state. Sub-national authorities play the crucial part in stimulating this development. The system of sub-national taxes serves as a financial basis of their functioning. Russia and China cover huge territories and the problem of economic development of their regions has always been topical. The issues of sub-national taxation development, therefore, are extremely important for both countries. In the paper the systems of sub-national taxation in Russia and China are compared. Based on the comparative analysis, the author offers examples of China’s positive experience for improving the system of sub-national taxes in Russia.

Keywords: SUB-FEDERAL TAXES, LOCAL TAXES OF CHINA, LOCAL TAXES OF RUSSIA, SUB-NATIONAL BUDGETS, FISCAL FEDERALISM