Certain sports entities in the UAE will now be exempt from corporate tax, the country's Ministry of Finance has said.
The Ministry said that Cabinet Decision No. (1) of 2026 provides an exemption to international and regional sports entities and supporting ancillary entities that operate on a non-commercial basis.
It covers entities whose primary objective is the promotion, management, or development of one or more sports at the international or regional level, and which are responsible for organising or co-ordinating such sports and are recognised by the Ministry of Sports or any competent sports authority, the ministry said in a statement on Monday.
The decision is aimed at the "continued sustainable development of the sports ecosystem" and to "align with international best practices, enhance the sector’s contribution to the national economy, and consolidate the UAE’s position as a global hub for the development of modern sports systems", the ministry added.
To qualify, the entities must not engage in any business or activities other than those directly related to achieving their principal objective. All income and assets must be used exclusively for non-profit activities or to cover "necessary and reasonable" related expenses.
The decision also requires that no part of the sports entity’s income or assets be used for the personal benefit of any shareholder, member, trustee, founder, or settlor, unless such beneficiaries are qualifying public benefit entities, government entities, government-related entities, or other approved sports entities.
The relevant sports entities are required to submit an application to the Federal Tax Authority with all necessary supporting documents, data, and information to verify their eligibility.
The UAE introduced the federal corporate tax with a standard statutory rate of 9 per cent starting from the financial year beginning on or after June 1, 2023. It brought the income of companies exceeding Dh375,000 ($102,110) within the taxable bracket. Taxable profits below that level are subject to a levy of zero per cent.
