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The United Arab Emirates Ministry of Finance has announced Cabinet Resolution No. 1 of 2026, granting corporate tax exemptions to qualifying sports entities under Federal Decree-Law No. 47 of 2022 on taxation of corporations and businesses. According to the ministry, this corporate tax exemption aims to enable the sports sector to achieve sustainable development while aligning with international best practices. The resolution reflects the UAE’s commitment to supporting the sports industry and reinforcing its global position as a hub for modern sports development.
The new decision exempts international sports bodies, sports organizations, and supporting entities that operate on a non-commercial basis from corporate tax obligations. These organizations must primarily focus on promoting, managing, or developing one or more sports at the international or regional level and must be recognized by the Ministry of Sport or other relevant sports authorities.
Corporate Tax Exemption Eligibility Requirements
To qualify for the corporate tax exemption, sports entities must meet several strict criteria outlined in the resolution. Organizations cannot engage in any business activities beyond those directly related to achieving their primary sports-related purpose. Additionally, all income and assets must be used exclusively to serve the organization’s main objectives or to cover necessary and reasonable expenses incurred for related purposes.
The ministry stipulated that no portion of a sports entity’s income or assets may be distributed for personal benefit to shareholders, members, trustees, founders, or settlors. However, exceptions apply for qualified public benefit entities, governmental bodies, government-affiliated organizations, or other approved sports entities. This requirement ensures that corporate tax exemptions support genuine non-profit sports development rather than commercial interests.
Application Process and Documentation
Sports organizations seeking to benefit from the corporate tax exemption must submit formal applications to the Federal Tax Authority. According to the resolution, these applications must include comprehensive supporting documents, data, and information that enable the authority to verify compliance with all specified requirements. The regulatory framework ensures that only entities genuinely contributing to sports sector development receive tax benefits.
Meanwhile, the decision emphasizes transparency and accountability by requiring exempt organizations to operate according to non-profit principles and the highest standards of governance. This approach guarantees that corporate tax relief serves the public interest and supports the broader goals of sports development in the UAE. The ministry stated that this framework aligns with the country’s vision to enhance the sports sector’s role in the national economy.
Implications for UAE Sports Development
The corporate tax exemption represents a significant policy shift aimed at strengthening the Emirates’ competitive position in international sports. Industry observers note that tax relief for qualifying sports bodies could attract more international federations and regional sports organizations to establish operations in the UAE. In contrast to purely commercial enterprises, these exempt entities focus on grassroots development, athlete training, and competition organization.
Additionally, the resolution supports the UAE’s strategy to diversify its economy beyond traditional sectors while building world-class sports infrastructure and programs. By removing the corporate tax burden from non-commercial sports entities, authorities hope to accelerate innovation and investment in athletic development. The measure also demonstrates the government’s recognition of sports as a contributor to social cohesion and national identity.
Furthermore, the exemption policy positions the UAE alongside other nations that provide favorable tax treatment to sports organizations operating for public benefit. This competitive advantage may prove crucial as countries worldwide compete to host major sporting events and attract international sports governance bodies. The resolution reinforces Abu Dhabi and Dubai’s growing reputations as global sports capitals.
The Federal Tax Authority has not yet announced specific timelines for processing exemption applications or detailed guidance on documentation requirements. Sports entities interested in obtaining corporate tax relief are expected to monitor official announcements regarding implementation procedures and compliance deadlines in the coming weeks.
