In the news feeds, no, no, yes, there will be information about the mythical budget of the Russian Orthodox Church, about the incredible spending of the Orthodox clergy, about legislation that makes the church practically inviolable. It is no wonder that against this background, many are asking the question: "Is the church subject to taxes in Russia?" We will answer it in as much detail as possible.
What is church
In order to understand whether the church pays taxes in Russia, let's define what the ROC is in essence from a “business” point of view. Religious organizations in our country are considered full participants in economic relations - they carry out certain activities, own any property - movable, real estate, land. It is logical that with all this they have the right to be called legal entities.
In addition to all of the above, religious organizations are engaged in specific cult activities - they conduct certain rituals and ceremonies, meetings and events. Art. 8 Federal Law No. 125 "On freedom of conscience and non-religious associations" defines the concept of "church" as follows: a voluntary association of groups of citizens, which is formed to spread the faith and its joint confession, among other things, registered as a legal entity.
Legal framework and church
Consider legal acts, one way or another related to the taxes of the church to the state in Russia:
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- Federal Law No. 7 "On Non-Profit Organizations": the church has the right to engage in entrepreneurship, as well as create a number of its own enterprises and organizations.
- Federal Law No. 129 "On state registration of individual entrepreneurs and legal entities": the church and its branches are subject to mandatory state registration.
- The previously mentioned Federal Law No. 125, Article 11: for religious organizations, a special procedure for state registration is implied.
- Tax Code of the Russian Federation, article 3, paragraph 1: products of religious significance are exempt from VAT.
- Resolution of the Government of the Russian Federation No. 251 (31.03.2001): the document contains a complete list of items and services sold by the church and exempt from VAT.
- Agreement "On the Importation of Educational, Scientific and Cultural Materials": imported religious imported products are subject to taxes no higher than those applicable to similar goods on the territory of the host state.
Church income
Does the church pay taxes in Russia and on what income? This is a very interesting question for Russian citizens. Let's list the main points that make up the profit of a religious organization:
- donations of believers for services, commemorations;
- donations from patrons, sponsors;
- sale of candles;
- sale of books and religious attibutics;
- "Kruzhniy" collection after service;
- income from the activities of commercial church organizations;
- transfer of a number of church objects for free use;
- receipts from the state budget of the Russian Federation.
VAT for church
Speaking about what taxes the church pays in Russia, it is imperative to touch upon those payments from which the religious organization is exempt or which deducts to the treasury on a preferential basis. First of all, let's pay attention to VAT - we give a list of what the sale directly by the church gives it the right not to pay this 18% tax to the state treasury:
- Objects of religious worship: icons, statues, altars, calvary, etc., as well as elements that make up an indivisible whole with them: covers, icon frames, vestments, etc.
- Interior decoration items, architectural elements: iconostases, tombs, crayfish, censer, candlesticks, gates, window bars, thrones, altar cabinets, etc.
- Items of paraphernalia of the Orthodox religion: crosses, belts with prayers, staffs, medallions, standards, banners, wands, amulets, artistic forms of Easter eggs, etc.
- Necessary elements and substances, without which it is impossible to conduct divine services: incense, oil, censers, candles, myrrh, devices for unction, cherubs, seals for prosphora and artos, etc.
- The clothes of clergymen: robes, belts, handcuffs, clubs, legguards, felonies, scarves, aprons, etc., as well as holders, hangers, cases, chains, shafts, etc. for them.
- Paper products: liturgical books (Holy Scripture, prayer books, saints, sheet music, ritual performances, religious calendars, etc.), religious educational, educational books, official letterheads and printed products of religious organizations (letters, diplomas, postcards, messages, prayers, canonical images, photos, etc.)
- Church video and audio products: materials that visually teach, educate, illustrate the elements of doctrine, religious practice, worship, etc.
- Repair and restoration work required for the temple - if they are carried out by an organization that has a license for such activities.
It is important to note that VAT exemption on the listed items is available not only directly for the church, but also for a commercial company, whose authorized capital is entirely the contribution of a religious association.
Property tax for church organizations
Art. 381 of the Tax Code of the Russian Federation exempts the church from paying property tax, but only in relation to that movable and immovable property that is directly used for religious activities. A church dormitory, a building for brethren, etc., will already be subject to this tax in the same amount as for other Russian taxpayers. But here there is one thing: the property tax is regional, which means, in accordance with the Tax Code of the Russian Federation, Art. 12, clause 3, the subjects can independently set its size for non-commercial payers. For religious organizations, it is made equal to zero.
Land tax for the church
Asking whether the church is exempt from taxes in Russia, let us touch upon such an important revenue for the budget as the land tax. Plots belonging to the church are exempt from it in two cases - if it has:
- Land owned by the right of perpetual use.
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Territories where temples, churches, chapels, as well as structures for both religious and charitable purposes were built. The latter include:
- buildings for the implementation of certain services, prayer, religious buildings, rooms for meetings, rituals, ceremonies;
- pilgrim centers and hotels for pilgrims directly owned by the church;
- religious church organizations - seminaries, theological schools, religious schools and student dormitories;
- charitable canteens, dormitories and hospitals, Orthodox orphanages, educational institutions with the status of charitable, etc.
According to the letter of the Ministry of Finance No. 03-06-02-02 / 41. the entire plot belonging to the church is exempt from land taxation, even if there are structures on its territory that are not related to the above. And the Tax Code of the Russian Federation (p. 395, p. 4) states that the privileged land will be the property of the Orthodox Church, but on which buildings and structures of other religious denominations are located.
Continuing the theme "Does the church pay taxes in Russia?" letter of the Ministry of Finance No. 03-05-04-02 / 31 of May 7, 2008 warns that a site belonging to a religious organization, but having on its territory only buildings and structures for the sale of paraphernalia, literature, etc., without the presence of religious buildings and charitable purposes, fully subject to land tax.
Religious organization and income tax
Church tax in Russia is also a tax on profits. According to the RF Tax Code, Art. 246, item 1, the religious organization is its payer. However, a number of benefits are provided for her here too - the following is not taken into account when compiling the tax base:
- Property (including money) and property rights that came to the church budget in connection with the performance of religious rites and ceremonies, as well as as a result of the sale of their profile paraphernalia and literature.
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Targeted receipts (other than those related to excisable). This includes:
- donations and contributions;
- property transferred by will, inheritance;
- property received for the implementation of statutory activities;
- grants from individuals and organizations included in the List of Government Resolution No. 485 (28.06.2008).
Earmarked receipts are not taxed only if they were spent strictly for the intended purpose - a detailed report must be submitted to the tax authority by the church.
Church taxes
Does the church pay taxes to the state in Russia? 91% of those interested in this issue cannot find what is taxed on the activities and property of the church. The religious organization pays the following:
- Transport tax: all vehicles run by the church are taxed in the same amount as for other taxpayers.
- Excise taxes (RF Tax Code, Art. 181): cosmetics and perfumery, alcohol-containing substances, medicines, prophylactic agents, etc. Note that jewelry, including those sold by the church, is not an excise item.
So, does the church pay taxes in Russia? The answer will be positive, but with a number of but - after all, in the Russian Federation religious organizations are endowed with a large number of tax benefits.
Yulia Abdulbarova
