The IRPF’s box could be extended to other seven religions in Spain

The IRPF’s box could be extended to other seven religions in Spain

A similar box to that of the Catholic Church could be implemented in the tax return’s application from which might be benefited around seven religious creeds in Spain.

The Minister of Justice will implement a box like the Catholic Church has in the tax return application for another seven notoriously established religions in Spain. Via the General Direction of International Judicial Cooperation and Relations with the Creeds, the Ministry will present this issue throughout this term.

Creeds to be benefited from this measure could be Islam, Judaism, Evangelical Christianity, the Orthodox Christianity,  Mormons, Jehovah’s Witnesses and Buddhism. With this box, this creeds’ loyals will have the chance, like catholics already have had since 2007, of assigning up to 0.7% of their taxes to them.

Religious creeds in Spain have two financial ways, the direct one, via subsidies, and the indirect one, through tax exemptions.

Regarding the first one, it is the State which provides subsidies to those religions from the Pluralism and Coexistence Foundation, dependent from the Ministry of Justice. Indirect financing is then made by recognizing certain particularities in this religions’ tax schemes. Notoriously established religions are exempt from IBI, corporate tax and from property transfer tax (IPT) by virtue of the 2002 Sponsorship Act.

This measure has been a historical re-vindication from the Protestantism in Spain and, besides, it counted on the Catholic Church’s support. However, the Ministry of Finance will have the last word both in its implementation decision and responsibility.

Recognizing the 0.7% box to other notoriously established religions in Spain, so that they can freely donate part from their paid taxes to finance them is a big step in the religious freedom of our country.

At Del Canto Chambers we are specialized in tax and trade law and we can be contacted at clerk@delcantochambers.com

Del Canto Chambers’ Editorial Board

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