Managua - Nicaragua’s National Assembly has approved new tax measures requiring all churches and religious organizations, regardless of denomination, to pay taxes on offerings received from the faithful.

The tax reform, passed on August 20, removes longstanding tax exemptions for religious institutions, making them subject to income tax on their activities and assets, even if exclusively intended for religious purposes.

The amendment to Law 822 mandates that churches now follow a tax regime similar to that of the private economic sector, where generating profit is the primary objective. Consequently, offerings, alms, and donations from the faithful will be taxed at rates ranging from 10 to 30 percent.

Independent Nicaraguan media have reported that this elimination of tax exemptions is expected to severely impact the operational and financial capabilities of religious communities. These communities are heavily involved in educational, social, and assistance efforts, and the new tax burden could have significant consequences, particularly for the most vulnerable social groups.

This tax reform comes during a challenging time for the Catholic Church and other religious and civil organizations in Nicaragua. The government has recently arrested and expelled priests and revoked the legal status of over 1,500 non-governmental organizations, many of which were religious. The assets of these organizations have been transferred to the state.

In response to these actions, the United Nations High Commissioner for Human Rights expressed "deep concern," stating that the Nicaraguan government's initiatives "threaten freedom of religion and freedom of association."

The High Commissioner called on the government to "guarantee and protect the fundamental freedoms" of individuals in the country.