UAE exempts non-commercial sports entities from corporate tax under new law
Measure aims to support sports sector growth, strengthen UAE’s position as sports hub
Dubai: The UAE Ministry of Finance has announced a new Cabinet decision exempting certain sports entities from corporate tax, as part of efforts to support the long-term development of the country’s sports ecosystem.
The decision, Cabinet Decision No. (1) of 2026, was issued under Federal Decree-Law No. 47 of 2022 on the taxation of corporations and businesses, the ministry said.
According to the Ministry of Finance, the exemption is designed to promote sustainable growth in the sports sector, align with international best practices, and increase the sector’s contribution to the national economy. The move also supports the UAE’s ambition to position itself as a global hub for modern sports systems.
Entities covered by exemption
Under the decision, corporate tax exemptions apply to international sports entities, sports entities, and certain supporting ancillary entities that operate on a non-commercial basis.
To qualify, an entity’s primary purpose must be the promotion, organisation, management, or development of one or more sports at the international or regional level. Eligible entities must also be officially recognised by the Ministry of Sports or another competent sports authority.
The decision specifies that qualifying entities must not engage in business activities beyond those directly linked to their core sporting objectives. All income and assets must be used solely to achieve those objectives or to cover necessary and reasonable related expenses.
Conditions to prevent misuse
The Cabinet decision also sets restrictions on the use of income and assets. No part of an entity’s income or assets may be used for the personal benefit of any shareholder, member, founder, trustee, or settlor.
Exceptions apply only where beneficiaries are qualifying public benefit entities, government entities, government-related entities, or other approved sports entities.
The Ministry of Finance said these conditions are intended to ensure that the tax exemption is limited to genuine non-profit sports organisations and aligned with principles of transparency and public interest.
Application process required
Sports entities seeking to benefit from the exemption must submit an application to the Federal Tax Authority, along with all required supporting documents, data, and information to verify eligibility.
The ministry said the application process will allow authorities to assess compliance and confirm that exempt entities meet all conditions set out in the decision.
Officials said the framework ensures that tax-exempt status supports organisations that play a real role in developing sports in the UAE, while maintaining regulatory oversight and accountability.
