The UAE Ministry of Finance stated that it has issued Cabinet Decision No (1) of 2026, which offers a corporation tax exemption to some sports organizations, as provided in Federal Decree-Law No 47 of 2022 on taxation of corporations and businesses.
The ministry stated that the decision is aimed at promoting the sustainable evolution of the sports ecosystem in the UAE, making the sector close to the world standards and contributing to the national economy more, as well as establishing the country as the world center of modern sports systems.
The exemption will apply to international sports entities, sports entities, and supporting ancillary entities whose activities under the new decision will be on a non-commercial basis.
In order to qualify, entities must promote, manage, or develop one or more sports at the international or regional level as their primary objective, and must be responsible for organizing or coordinating such sports. The Ministry of Sports or another authoritative sports organization should also recognize eligible entities.
The determination holds that such entities shall not conduct any business that is not properly connected to their core purpose, and that all income and assets shall be devoted solely to the benefit of that purpose, or to the payment of required and reasonable related expenses.
The cabinet decision states that none of the income or assets of an entity shall be utilized to the personal advantage of any shareholder, member, trustee, founder, or settlor, unless the recipients are qualifying public benefit organizations, government organizations, or other government-related organizations or approved sports organizations.
In order to access the tax exemption, the sports entities should submit an application to the Federal Tax Authority and forward supporting documents, data, and information to determine their eligibility.
The ministry indicated that the framework is aimed at ensuring that only entities that are actually involved in the development of sports in the UAE can make use of tax-exempt status and still observe the principles of transparency, public interest, and non-profit making.
