Individuals and entities that have accounts at the Vatican bank and are subject to taxation in Italy will have until mid-April to report to Italian authorities the income earned by their Vatican accounts. As part of ongoing efforts by the Vatican to increase financial transparency and accountability, an agreement between the Holy See and Italy concerning taxes went into effect last Saturday.
The Vatican released further details about the agreement in a press release on Monday, reiterating that individuals and entities had 180 days from the date of implementation to follow the convention’s mandates, complete the necessary paperwork and – for those with Vatican bank accounts – to inform the proper Italian tax authorities. The convention’s application will be overseen by the Vatican Secretariat of State, the press release said. The tax convention on income from capital and other income from financial activities in Vatican City State applies to citizens whose tax residence is in Italy. The agreement, initially signed on 1st April, 2015, includes the full exchange of financial information about asset holders who are subject to Italian taxes and establishes the procedures necessary for declaring and paying taxes on income, which would include interest or earnings from bonds, investments and savings in Vatican institutions.
Picture: The Institute for the Works of Religion, popularly known as the Vatican bank, is seen in a 2009 photo.