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CARF Foundation

20 April, 22

Blog

Does it matter to mark the "X" of the Church in the Renta?

We tell you about one of the options you have when filing your income tax return: the tax allowance, by which you choose whether you want to allocate an amount to the church, by checking the church box on your income tax return.

The Church received 301 million euros in 2020 from the allocation of the 105 box, a + 6 % more than in the previous fiscal year.

This has meant that the percentage of taxpayers who checked the church box on their income tax returns was 32.15 %.

This year the figures will make visible the economic consequences of the pandemic situation in Spain since the first quarter of 2020.

What is the tax allocation?

This is a voluntary option to allocate a percentage of the full membership fee to collaborate with the economic support of the Catholic Church and/or other purposes of social interest.

Checking the box for the Catholic Church on the income tax return does not mean that the taxpayer has to pay more or be refunded less and is fully compatible and independent of the allocation for other purposes of social interest.

On page 1 of Form 100, where you enter your personal data, you must check the box if you want to contribute to the support of the Catholic Church (box 105) and the box for activities of general interest considered to be of interest (box 106).

In both cases, 0.7 % of the total quota will be allocated to each option.

On the contrary, do not check any option. It will mean that 0.7 % of the total personal income tax liability will be imputed to the General State Budget for general purposes.

In any case, whatever your decision regarding the tax allocation, does not change the final amount of the tax you pay or the refund to which you are entitled. It does not affect your tax liability.You simply decide where you want a portion of your taxes to go.

Tax Deductions: will I pay more taxes?

Another The way to help the Church is by making a periodic or one-time donation. Collaborating in this way with NGOs that support the work of the Catholic Church. These donations can be tax deductible in the tax return.

The tax deductibility of donations to NGOs is governed by the new Patronage Law 49/2002, which rewards private efforts in activities of general interest.

Tax benefits for donors

Thanks to the new Patronage Law, donations of up to 150 € will have a tax deduction of 80 %. That is, by donating €12.50/month or €150/year, the Treasury will refund you €120 on your tax return.

For 30 € per year you can help us to our seminarians continue their formation and thus ensure that no vocation is lost.

Is it important to mark the X for the Catholic Church on the Renta? - CARF

The importance of marking the "X" to the Catholic Church for the Income Tax campaign every April.

Supporting the Church: the importance of checking the Catholic Church box on your tax return

Since 2007 the Church does not receive money from the General State Budget and renounces to the VAT exemption. That year the 1979 Agreement between Spain and the Holy See on economic matters was modified and the box 105 for the support of the Catholic Church was created.

The amount received from taxpayers who check the Catholic Church box on their income tax returns is distributed in solidarity from the Interdiocesan Common Fund.

This Fund, which is made up of direct contributions from the faithful and taxpayers, is distributed among the different dioceses according to their size and needs. It accounts for an average of 25 % of the financing of the dioceses in Spain.

According to the latest available data, nearly 9 million people mark the "X" in favor of the Catholic Church in our country.

A gesture that the Church appreciates and encourages to continue doing so, in order to be able to continue with all the work it does for the benefit of society as a whole.

How is the Church financed?

The Church in Spain relies on several sources of financing to support its activities.

The main ones are:

  • Direct contributions that are made by the faithful (donationssubscriptions, tithes and others),
  • Collaboration of public administrations (pursuant to Article 16 of the Spanish Constitution),
  • Management of its own resourcess (equity, provision of services, etc.).

The Church Transparency Portal

The Church in an exercise of transparency, each year reports the amount of taxpayers' tax allocations received each yearand what has been the destination of this amount.

Once this amount is distributed, mainly to the dioceses, it becomes part of their diocesan economy. All this information is reflected each year in the Annual Report of activities of the EEC.

On the website of the Episcopal Conference each year they report the amount that has been received by checking the box for the Catholic Church on the income tax return.

It has as mission to bring the Church closer to society by promoting measures of transparency and good economic governance in the Episcopal Conference and its works, as well as in the rest of the entities that depend on it.

"The Church undoubtedly has a religious, spiritual and divine mission. But the Church is incarnated in the world, she lives in the world and also has her needs in order to carry out the mission that constitutes her".

Cardinal Antonio Cañizares.

Destination of funds contributed by checking the church box on income tax returns

The amount from the tax allocation is sent to the 70 dioceses in Spain.. The dioceses integrate it into their diocesan budget to undertake the activities proper to the Church.

More than half of the the expenses of all Spanish dioceses were pastoral and welfare expensesThe cost of the buildings, together with building maintenance and operating expenses.

The Episcopal Conference annually requests information from the dioceses on their consolidated financial accounts, including the parishes, in order to provide transparency to the process and obtain information on the origin of their resources and the applications that have been given each year.

With the action of marking the "X" in the church box on the income tax, we contribute resources for the Church to continue carrying out activities that benefit the whole of Spanish society.

That is why the Church thanks all those Spaniards who contribute with this gesture and with the rest of the campaigns carried out throughout the year to support the religious, spiritual and social work at the service of millions of Spaniards.

This contribution is decisive in sustaining the immense work of the Church, which, in order to continue helping, needs more than ever the collaboration of everyone.

For all these reasons CARF encourages you to check the box for the Catholic Church. in this year's income tax return.

A VOCATION 
THAT WILL LEAVE ITS MARK

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