CORPORATE INCOME TAX REVENUES IN THE ARCTIC: REGIONAL VARIATION

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Ekaterina A. Zakharchuk1, Aleksey F. Pasynkov2, Vasily E. Uporov3

1, 2, 3Institute of Economics of the Ural Branch of the Russian Academy of Sciences, Yekaterinburg, Russia

1zakharchuk.ea@uiec.ru, ORCID 000-0001-5546-8127

2monografia@mail.ru, ORCID 0000-0001-5186-4130

3uporov.ve@uiec.ru, ORCID 0000-0002-5552-9433

 

Abstract. Regional budgets in the Arctic rely heavily on corporate income tax revenues, which account for approximately one-third of their own-source revenues. This study assesses the contribution of municipalities to corporate income tax revenues across Arctic regions. The analysis is based on official data from the Federal Tax Service of the Russian Federation on corporate income tax accruals at the regional and territorial levels for the period 2013–2023. The study covers six regions fully or partially classified as Arctic, with a distinction made between municipalities located within the Arctic Circle and those outside it. The data were aggregated at the level of municipal districts and urban districts, and a comparative analysis was performed across regions and the total number of municipalities. The study contributes to the literature by applying a methodological approach to assessing the structure of corporate income tax revenues and the role of Arctic municipalities in regional tax generation. The results demonstrate a pronounced territorial unevenness in tax generation. In many regions, the majority of corporate income tax revenues are generated by only a few municipalities (often regional capitals, though not exclusively), while the remaining municipalities generate no revenue. The contribution of municipalities partially located within the Arctic Circle is significant and has shown an increasing trend in recent years. The analysis also indicates a growing role of the tax base in remote Arctic territories, despite the absence of large population centers. Overall, the results suggest that, despite certain statistical limitations, the available data allow for the identification of key trends and spatial characteristics of corporate income tax generation across territories. The theoretical and practical significance of the study lies in its potential to support assessments of the sustainability of corporate income tax revenues across municipalities. Future research will focus on developing a comprehensive territorial tax balance sheet for Arctic municipalities.

Keywords: corporate income tax, Arctic, municipalities, budget revenues, regional budgets

Acknowledgment: This study was supported by the Russian Science Foundation, Grant No. 25-28-00461, https://rscf.ru/project/25-28-00461/.

For citation: Zakharchuk E. A., Pasynkov A. F., Uporov V. E. Corporate income tax revenues in the Arctic: Regional variation.  Sever i rynok: formirovanie ekonomicheskogo poryadka [The North and the Market: Forming the Economic Order], 2026,  no. 1, pp. 107-120. doi:10.37614/2220-802X.1.2026.91.008.

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