- As an American citizen, Pope Liu XIV It may be required to submit a tax declaration to the United States government, and its tax commitment may reach six numbers. Because the United States imposes the taxes of its citizens on their income all over the world, Leo will need to provide a return, with some additional details based on the bank accounts that control it as president of the Vatican, unless the United States abandons an exception to him or abandons his nationality.
One of the first things that Pope Liu XIV may need to do because the newly -elected leader of the Catholic Church has nothing to do with religion, but rather financial: finding an accountant.
The United States is one of the few countries That the citizens who live abroad. Consequently, thanks to his American passport, the 69 -year -old Pope Chicago, known until last week as Robert Prevost, will likely need to make a tax declaration to the United States government just like any other citizen. luck.
As the Pope, Liu fourteenth has a salary of 30,000 euros, or about 33,000 dollars per month, putting his annual profits of about $ 396,000 a year. Unless it is given an exception, the first US Pontif may have a estimated tax responsibility of $ 135,287, which includes both federal and self -employment tax, based on his salary, he told the accountant in Washington Hikanida based in Washington luck.
Edward A. David, Assistant Professor in the Department of Theology and Religious Studies at the King’s College London, Washington Post It is difficult to know whether the United States is insisting on collecting the tax declaration of the Pope, and the government can exempt it. However, Timothy Vogarti, a professor of accounting at the University of Kis Western Reserve, told luck The Pope may not be exempt.
“Although there is no account of the estimated authority that may be brought in, it is unlikely that the new Pope will be exempt from American income taxes. The American tax law claims the right to impose taxes on all citizens on their income all over the world.
The Treasury did not respond immediately luckA question about whether the Pope can get an exemption.
From 2015 to 2023, Liu fourteenth worked as a Czechle -Peruvian bishop, where he is likely to deal with the US long -term tax system. However, because of his high salary, if before him, his control will be placed on the Financial Vatican accounts, it may be more complicated than ever.
Providing the tax declaration is mandatory for all citizens, and if the laws are applied as they will be to every other citizen, Leo XIV may face a huge tax bill.
“Regardless of the place where there is a religious leader, they still have to pay US taxes on their income if they maintain their nationality in the United States,” said Kastaneda.
A spokesman for the Tax Authority refused to comment on luck About the tax commitment to Pope Francis.
“Under the law, federal employees are prevented from disclosing tax declaration information,” the spokesman said.
However, the Pope may have some options, but not much, to reduce his tax bill, Linda Jensen, founder of the Financial Heart Group, told. luck.
Regardless of the standard discount of $ 14,600, Liu may be eligible to deduct the costs associated with his housing if he received an allowance or lives in housing provided by Vatican such as papal apartments or favorite accommodation of Pope Francis, the deceased, Casa Santa Marta.
Jensen said that the Tax Authority allows religious leaders to deduct a lower discount instead of official housing allowance, actual housing expenses, or fair rental value of the house (including furniture and facilities), from their tax bill.
Jensen said that the clergy members consider their own account for social security purposes and medical care taxes, but if Pope Liu had previously demanded a conscientious religious objection to public insurance early in his career, it may be far from those taxes.
Americans who earn money abroad are usually capable of deducting $ 130,000 of foreign acquired income, but it is doubtful that this applies to Liu XIV because the base excludes acquired income from a foreign government, such as the Vatican.
Perhaps Pope Liu XIII’s nationality may be inadvertently brought significant financial complications to the Vatican. Under the Law of Compliance with the Foreign Account Tax, which was aimed at taking strict measures against tax evasion abroad, the Vatican is required to inform the Tax Authority to the details of the accounts of the Bank of Americans and mediation, which in theory, will include Liu Fourteenth accounts, Jensen said. Because of his authority over external accounts as president of the Vatican, Pope Liu XIV may also need to provide a Form 8938 With the Tax Authority.
Finally, American citizens who have a “signature authority”, or the final control of a bank account that contains more than 10,000 dollars, must also submit a Foreign bank account report To the Ministry of Treasury Financial Infusion Unit. As of 2023, the Vatican Bank had $ 6.1 billion.
“As an American citizen abroad with major foreign relations, he has complicated reports obligations. Even the Pope may need a great comprehensive peace agreement,” said Jensen.
This story was originally shown on Fortune.com
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