The Ministry of Finance (MoF) has announced the issuance of Cabinet Decision No. (1) of 2026 on Exempting Certain Sports Entities from Corporate Tax for the Purposes of Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses. The Ministry affirmed that the decision aims to support the continued sustainable development of the sports ecosystem, align with international best practices, enhance the sector’s contribution to the national economy, and consolidate the UAE’s position as a global hub for the development of modern sports systems. The new Cabinet Decision provides an exemption from Corporate Tax for International Sports Entities, Sports Entities, and supporting Ancillary Entities that operate on a non-commercial basis, whose primary objective is the promotion, management, or development of one or more sports at the international or regional level, and which are responsible for organising or coordinating such sports and are recognised by the Ministry of Sports or any competent sports authority. To qualify, these entities must not engage in any business or business activities other than those directly related to achieving their principal objective, and all income and assets must be used exclusively to serve that objective or to cover necessary and reasonable related expenses incurred. The decision also requires that no part of the sports entity’s income or assets be used for the personal benefit of any shareholder, member, trustee, founder, or settlor, unless such beneficiaries are qualifying public benefit entities, government entities, government-related entities, or other approved sports entities. To benefit from the exemption, the relevant sports entities are required to submit an application to the Federal Tax Authority with all necessary supporting documents, data, and information to verify their eligibility. This framework ensures that tax-exempt status is reserved for entities that play a genuine role in promoting and developing sports in the UAE while maintaining full alignment with principles of transparency, public interest, and non-profit operations.
