Nicaragua to tax Churches on offerings and donations
Vatican news
Nicaragua’s parliament has approved new tax measures that will require churches and religious organizations of all denominations to pay taxes on offerings received from the faithful.
By Giancarlo La Vella
Nicaragua’s National Assembly approved on August 20 a tax reform that removes tax exemptions for religious institutions, requiring them to pay income tax on activities and assets even if they are exclusively for religious purposes.
According to independent Nicaraguan media, the amendment to Law 822 will force all churches, regardless of their denomination, to follow a tax regime similar to that of the private economic sector, where legitimate profit is the objective of the activity.
Offerings, alms and donations from the faithful will therefore be subject to income tax at rates ranging from 10 to 30 percent.
It is worth noting that the elimination of tax exemptions will have a severe impact on the operational and financial capacities of religious communities, which are engaged in educational, social and welfare efforts, with significant consequences especially for the most vulnerable social groups.
The reform comes at a difficult time for the Catholic Church and other religious and civil organisations.
Following the arrest and expulsion of priests, the Nicaraguan government recently revoked the legal status of another 1,500 nongovernmental organizations, many of them religious, transferring their assets to the state.
Regarding this decision, the United Nations High Commissioner for Human Rights expressed his “deep concern”, saying in a statement that the Nicaraguan government’s initiative “effectively threatens freedom of religion and freedom of association”, and calling for the “guarantee and protection of fundamental freedoms” of individuals.
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