The UAE Ministry of Finance has issued a Cabinet decision granting corporate tax exemptions to certain sports entities, reinforcing efforts to support the long-term development of the national sports ecosystem.
Scope of the exemption
Under Cabinet Decision No. (1) of 2026, issued pursuant to Federal Decree-Law No. 47 of 2022, exemptions apply to international sports entities, domestic sports bodies, and specific ancillary entities operating on a non-commercial basis. Moreover, qualifying entities must focus primarily on promoting, organising, managing, or developing sports at the regional or international level. Additionally, each entity must obtain official recognition from the Ministry of Sports or another competent authority.
Eligibility and safeguards
However, eligible entities must limit activities strictly to their core sporting objectives. Therefore, they must deploy all income and assets solely to advance those objectives or meet reasonable related expenses. Furthermore, the decision prohibits any use of income or assets for personal benefit. Exceptions apply only when beneficiaries qualify as approved public benefit, government, or sports entities. As a result, the framework aims to prevent misuse and maintain transparency.
Application and oversight
Sports entities must apply to the Federal Tax Authority and submit supporting documentation. Consequently, authorities can verify compliance and eligibility. Overall, the decision seeks to encourage sustainable sector growth while preserving regulatory oversight and accountability.
