Quick Answer
Cabinet Decision No. 1 of 2026 exempts qualifying international sports entities, sports entities, and their ancillary support entities from UAE Corporate Tax, provided they operate on a non-commercial basis and exist to promote, manage, or develop sport at an international or regional level. The exemption applies retrospectively from 1 June 2023, the same date UAE Corporate Tax itself took effect.
Why a separate sports exemption exists
Before this Cabinet Decision, some sports associations could already claim relief as Qualifying Public Benefit Entities under Cabinet Decision No. 37 of 2023. That route works, but it depends on an entity being formally listed and does not speak to the operating realities of sports federations, national teams, event organisers, and the support bodies around them. The new decision creates purpose-built categories and conditions for the sports sector itself.
What the exemption asks of an entity
- Operate on a non-commercial basis, for the promotion, management, or development of sport.
- Apply to the Federal Tax Authority and be approved, not simply self-assess.
- Distribute no income or assets for private benefit.
- Keep proper records and stay inside the permitted activity scope.
- File the required annual confirmation to keep exempt status alive.
Commercial sports operations, such as private gyms and profit-driven academies, do not qualify and remain taxable at the standard 9% rate.
Read the full guide
The complete breakdown, including the three qualifying entity categories, the exact FTA conditions, the compliance calendar, and what happens if exempt status is lost, is here:
UAE Corporate Tax Exemption for Sports Entities 2026: Who Qualifies and What the FTA Requires
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