Since the days of the USSR, the church has lived its own life, separate from the state. What taxes does the church pay in Russia, if it is by itself, and does it make any contributions to the state budget at all?
The issue of taxation of the income of religious organizations has been resolved for about ten years. Most people believe that the church should pay taxes, like all citizens, since it collects very large amounts of donations from people and spends this money on its own needs. To answer this question, you need to read the information about the profit of this organization.
Profits of religious organizations
Since the church is a non-profit organization, then, by law, it must provide for itself. The purpose of a non-profit organization is not to make a profit. The main income of the church:
- sale of church supplies;
- donations from parishioners;
- payment for commemoration and wedding, baptism and other ceremonies;
- kruzhechny fees.
In addition, the Orthodox Church in Russia owns several commercial enterprises, from the income of which it fully provides about 19 thousand parishes. According to the laws of the Russian Federation, this type of activity is not prohibited for religious organizations. The ROC owns 10 candle-making workshops. The cost of candles and the price of products in the church differ significantly. The retail cost is many times higher than the manufacturing cost.
At the last meeting, Patriarch Kirill announced that the ROC contains 34.5 thousand churches and 293 dioceses. Every month, donations to the church are transferred to the diocese. Only objects that are in the process of restoration or construction are exempted from such fees (for some time). The collection of donations is made by the chief bishop of each church. In turn, he personally maintains a report for the patriarchate.
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About three million rubles is the monthly income of churches in Russia. The accounting department of the Russian Orthodox Church is conducted according to the following principle: after the service, a box with donations from parishioners is opened, which are transferred to the church treasury. Every month accounting records are transferred to the diocese, where the number of services, baptisms, weddings, etc. is clearly described and it is indicated what percentage was transferred to the diocese. This percentage can range from 10 to 50%.
Salaries of priests in Russia for 2016-2017
In the Russian Federation, things are not quite the same as in other countries. To conduct the economic management of church organizations, the Financial and Economic Department was created in 2009. Today priests in Russia have the following documents:
- work book, where the position is indicated;
- medical insurance;
- number in the Pension Fund.
The salaries of the ministers of the church are established by the abbot in the form of a fixed amount. It is equal to the average salary of an employee in the public sector (teachers, doctors, psychologists, etc.). In 2013, a law was passed under which priests in need of financial assistance can turn to the diocese for help. Also, this law stipulates that clergymen have the right to social protection, therefore, a commission was created to take care of those who need it.
Russian legislation in relation to the ROC
Does the church pay taxes in Russia? Since the church is a non-profit organization, in accordance with a law passed in April 2006, it must submit monthly financial statements to the Federal Registration Service (FRS). During the year, the patriarchs sought to simplify reporting conditions, and in April 2007 the law was amended. The purpose of this action was to facilitate church financial reporting. In accordance with the amendments, reporting should be conducted under four articles:
- According to the charter, there should be reports of the main activities.
- Officials should note the receipt of funds from both Russian and foreign legal entities.
- It is also necessary to indicate the funds from the use of other property.
- Accounts should be kept on the expenditures of funds received from citizens of the Russian Federation (organizations registered in the territory of the Russian Federation), from stateless persons and from foreign organizations.
What taxes does the church pay in Russia?
For religious organizations, the legislation of the Russian Federation provides for tax benefits. Churches were exempted from the following payments (tax exemptions of Art. 381 of the Tax Code of the Russian Federation):
- land tax;
- tax on property that is used for religious purposes (according to Art. 381 of the Tax Code of the Russian Federation);
- tax on church rituals and sales of church items (the law says that the church does not pay value added taxes on the sale of religious items).
Relief on taxes on the sale of church items
In 2001, the Government of the Russian Federation established a complete list of religious items that are not subject to taxation. The list contains five exceptions:
- Objects of religious worship, including icons, icon frames, thrones, altars, conical images, vestments, and so on.
- Decoration of temples and elements of architecture.
- Church attributes, including crosses, amulets, medallions, orders, commemorative signs and more.
- Items for worship and rituals.
- Religious clothing: robes, felonies, surplice, cords, belts, and so on.
Property tax incentives
In the Tax Code of the Russian Federation, the ROC is exempted from paying taxes on property used for religious purposes. Property tax exemptions do not count unless the property is eligible for religious use (such as dorms or fraternal buildings). In accordance with the law, Art. 372 of the Tax Code, property tax is a regional tax, therefore the authorities of individual subjects of the Russian Federation have the right to establish their own benefits for some non-profit organizations on the territory. As a result, religious organizations pay zero percent of taxation.
Land taxes
What taxes does the church in Russia pay for land holdings? According to the law of the Russian Federation, churches are exempt from taxes on land plots if religious buildings are located on these plots. These include:
- objects for worship (chapels, temples and other religious buildings);
- objects of religious worship (pilgrimage centers that belong to the Orthodox Church);
- spiritual objects of education (seminaries, clergy schools, colleges and dormitories);
- buildings that serve other church activities (buildings for charitable purposes).
Does the church pay taxes in Russia for buildings on its territory that are not religious sites? The ROC uses such privileges on land and builds buildings on its territories that are not intended for religious purposes. For such buildings, tax is also not paid to the state treasury.
Income taxes
What other taxes does the church pay in Russia? The ROC is a taxpayer for profits. But this does not apply to such types of income:
- property income;
- earmarked income, which includes money for the maintenance of non-profit organizations (contributions, charitable income, funds received from individuals, financing from the RF budget, property inherited).
These cash receipts should be used to carry out the main activities of the temples. In order to legally use such funds, they must meet the requirements:
- funds are intended only for the maintenance of churches, temples and religious sites;
- complete financial records of receipts and expenditures must be kept;
- at the end of the tax period, the church must submit its financial statement to the tax office, which will describe the intended use of the funds received.
If the above requirements are not met, the cash receipts will be treated as unrealized income.
Transport taxes
Of great interest among citizens is the following question: "What taxes does a religious organization pay for the use of cars?" In accordance with Law 357 of the Tax Code, the vehicle tax is paid by the person for whom the vehicle is registered. In this case, the authorities of the Russian Federation do not provide benefits. Therefore, the tax must be paid in full from vehicles that belong to spiritual organizations. But in fact, car benefits are introduced by the laws of the constituent entities of the Russian Federation.
Citizens' opinion on the payment of taxes by the Russian Orthodox Church
Many believe that payment to the state budget is not made by the Orthodox Church. On the accounts of such organizations there are billions of dollars that are not controlled by anyone. Citizens are outraged not only by tax benefits, but also by state bonuses from the Russian government:
- getting rid of the payment of all utilities;
- free use of electricity.
Not only the economic issue, but also the policy of the Orthodox Church worries the inhabitants of the country. For example, parishioners complain about such announcements in the church: "You can only put candles in the church of your own production, it is forbidden to put other people's candles."
Activists believe that the Russian Orthodox Church should conduct its activities in accordance with the laws of the country. But there are those who argue that the church is not obliged to pay taxes to the state treasury, as it is on its own, not financed by the state budget.