The UAE Ministry of Finance has announced a new Cabinet decision exempting certain non-commercial sports entities from corporate tax, reinforcing the country’s commitment to developing a sustainable and globally competitive sports ecosystem.
Issued as Cabinet Decision No. (1) of 2026 under Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses, the measure aims to support long-term growth in the sports sector while aligning with international best practices.
According to the Ministry of Finance, the exemption applies to international sports entities, sports organisations, and specific supporting ancillary entities that operate strictly on a non-commercial basis. The decision is designed to enhance the sector’s contribution to the national economy and strengthen the UAE’s position as a global hub for modern sports systems.
To qualify, an entity’s primary purpose must be the promotion, organisation, management, or development of sports at the international or regional level. Eligible organisations must also be officially recognised by the Ministry of Sports or another competent sports authority.
The decision clearly outlines that qualifying entities must not engage in commercial activities unrelated to their core sporting objectives. All income and assets must be used exclusively to achieve sporting goals or to cover necessary and reasonable operational expenses.
Strict restrictions have also been placed on the use of funds, with the Cabinet decision stating that no income or assets may be used for the personal benefit of shareholders, founders, members, trustees, or settlors. Limited exceptions apply only to qualifying public benefit entities, government entities, government-related bodies, or approved sports organisations.
The Ministry of Finance noted that these provisions ensure transparency, accountability, and public interest, while safeguarding the integrity of tax exemptions for genuine non-profit sports entities.
Sports organisations seeking to benefit from the exemption are required to submit an application to the Federal Tax Authority, along with supporting documents and data to verify eligibility. Authorities will assess compliance to ensure all conditions outlined in the decision are met.
Officials emphasised that the framework strikes a balance between supporting sports development and maintaining regulatory oversight, ensuring tax relief is directed toward entities that play a meaningful role in advancing sports in the UAE.
