The Ministry of Finance (MoF) has announced the issuance of Cabinet Decision No. (1) of 2026 concerning the exemption of certain sports entities from Corporate Tax, in accordance with Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses.
The MoF explained that the decision is intended to support the sustainable growth of the sports ecosystem, align with international best practices, strengthen the sector’s contribution to the national economy, and reinforce the UAE’s position as a global centre for the development of modern sports systems.
Under the new Cabinet Decision, International Sports Entities, Sports Entities, and supporting Ancillary Entities operating on a non-commercial basis are eligible for Corporate Tax exemption. These entities must have as their primary purpose the promotion, management, or development of one or more sports at the international or regional level, be responsible for organising or coordinating such sports, and be officially recognised by the Ministry of Sports or another competent sports authority. To qualify, the entities must not carry out any business or commercial activities beyond those directly linked to achieving their core objectives, and all income and assets must be used exclusively to fulfil those objectives or to cover necessary and reasonable related expenses.
The decision further stipulates that no portion of a sports entity’s income or assets may be distributed 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 obtain the exemption, eligible sports entities must submit an application to the Federal Tax Authority along with all required supporting documents, data, and information to confirm their eligibility. This framework ensures that Corporate Tax exemptions are granted only to entities that genuinely contribute to the promotion and development of sports in the UAE, while upholding the principles of transparency, public interest, and non-profit operation.
