The Ministry of Finance has announced the issuance of Cabinet Decision No. (1) of 2026, which exempts certain sports entities from corporate tax for the purposes of Federal Decree-Law No. (47) of 2022 on Taxation of Corporate Profits. This decision aims to enable the sports system to continue achieving sustainable development, in line with international best practices. The Ministry confirmed in a press statement that the decision reflects the UAE's commitment to developing the sports sector and enhancing its role in the national economy, and consolidating the country's global standing as a hub for developing modern sports systems. The new decision grants an exemption from corporate tax for international sports entities, sports entities, and supporting entities that operate on a non-commercial basis, whose primary objective is to promote, manage, or develop one or more sports at the international or regional level, and that are concerned with organizing or coordinating these sports and are recognized by the Ministry of Sports or any other competent authority for sports affairs. To benefit from the exemption, the relevant sports entities must submit an application to the Federal Tax Authority, accompanied by all supporting documents, data, and information that enable the Authority to verify that the specified requirements are met. This regulatory framework ensures that tax exemptions are granted to sports entities that effectively contribute to the development of the sports sector in the country, and that operate on a non-profit basis with the highest standards of transparency and in the public interest. To benefit from the exemption, these entities must not engage in any business activities other than those directly related to achieving their primary purpose, and their income and assets must be used exclusively to serve that purpose or to cover any necessary and reasonable expenses incurred for related purposes. The decision also stipulates that no part of a sports entity's income or assets may be paid for the personal benefit of any shareholder, member, trustee, founder, or custodian who is not a qualified public-benefit entity, a government entity, a government-affiliated entity, or another accredited sports entity.
