Abu dhabi: The Ministry of Finance (MoF) has announced a new Cabinet Decision exempting specific sports entities from Corporate Tax, aiming to support the sustainable development of the sports ecosystem.
According to Emirates News Agency, the issuance of Cabinet Decision No. (1) of 2026 provides exemptions under the Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses.
MoF stated that the decision is designed to align with international practices and enhance the sector's contribution to the national economy. It also aims to reinforce the UAE's stature as a global hub for the advancement of modern sports systems. The exemption applies to International Sports Entities, Sports Entities, and supporting Ancillary Entities that operate non-commercially with the primary goal of promoting, managing, or developing sports at international or regional levels. These entities must be recognized by the Ministry of Sports or an appropriate sports authority, and they must focus solely on activities that align with their primary objective, ensuring that all income and assets are used exclusively for that purpose or to cover necessary related expenses.
The decision specifies that no portion of the sports entity's income or assets should benefit any shareholder, member, trustee, founder, or settlor personally, except for qualifying public benefit entities, government entities, government-related entities, or other approved sports bodies.
Eligible sports entities seeking the tax exemption must apply to the Federal Tax Authority with comprehensive supporting documents and information to verify their qualification. This framework is established to ensure that only entities genuinely contributing to the promotion and development of sports in the UAE gain tax-exempt status, maintaining transparency, public interest, and non-profit operations.