Tax Regime for Religious Organizations: The Case of the Russian Orthodox Church

Abstract

The tax regulation of the activities of religious organizations in the Russian legal field has certain specific features due to their special status among non‑profit organizations and the performance of socially significant functions. Since the main source of property for such organizations is voluntary donations, which are often insufficient for conducting full‑fledged economic activities and covering the basic expenses of parishes, the state provides them with a number of tax benefits. The article examines various aspects of the tax regime for religious organizations using the example of the Russian Orthodox Church, including the application of value‑added tax to the sale of religious items, the performance of church sacraments, and the restoration of cultural heritage sites; the specifics of paying personal income tax and the possibility of donors receiving tax deductions; the conditions for exempting income received from income tax; the criteria for not applying property tax and land tax to buildings and land plots for religious or charitable purposes; as well as new regulatory provisions on the use of reduced rates of insurance premiums for centralized religious organizations and local religious organizations within their structure, which came into force in 2025.