In a move aimed at accelerating the growth of the sports sector, the UAE Ministry of Finance has issued a new Cabinet decision exempting eligible non-commercial sports entities from corporate tax.
The exemption, outlined in Cabinet Decision No. (1) of 2026 and issued under Federal Decree-Law No. 47 of 2022, forms part of the UAE’s broader strategy to support sports development, attract international sporting organisations, and reinforce the country’s standing as a global sports hub.
According to the Ministry of Finance, the exemption covers international sports bodies, domestic sports organisations, and certain ancillary entities, provided they operate on a non-commercial basis and are officially recognised by relevant sports authorities in the UAE.
To be eligible, an entity must focus primarily on the development, management, promotion, or organisation of sports at the international or regional level. The decision stipulates that such organisations must not engage in commercial activities beyond those directly related to their sporting objectives.
All income and assets of qualifying entities must be used solely to achieve sporting goals or to meet reasonable operational expenses. The decision further prohibits the use of funds for personal benefit, ensuring that shareholders, founders, members, or trustees do not profit from the exemption.
Exceptions are permitted only in cases involving approved public benefit entities, government bodies, government-related organisations, or other recognised sports entities, reinforcing the policy’s alignment with transparency and public interest principles.
To access the exemption, sports organisations must apply through the Federal Tax Authority, submitting all required documentation and information to demonstrate compliance with the eligibility criteria. The Ministry of Finance said the application process will enable authorities to verify that only qualifying entities benefit from the tax relief.
Officials stated that the regulatory framework ensures accountability while directing tax exemptions toward organisations that actively contribute to the development of sports in the UAE, supporting long-term economic and social objectives.
