Originally published in the February 19 edition of World Tax Daily (Copyrights Tax Analysts)
Presidential Decree 7,107/2010, which formalizes the Brazil-Holy See agreement on the legal status of the Catholic Church in Brazil, was published in the official gazette on February 12.
The agreement was signed in Vatican City on November 13, 2008, and entered into force in Brazil on the date of its publication.
Article 15 of the agreement confirms the constitutional tax exemption (tax immunity) for assets, income, and services relating to the religious activities of the Catholic Church in Brazil. The agreement extends to the Catholic Church the same tax exemptions applicable to similar nonreligious charities for their nonprofit social and educational activities, subject to compliance with all applicable requirements and conditions established by Brazilian law.
David Roberto R. Soares da Silva