The Ministry of Finance has announced on February 2026 new corporate tax exemptions UAE for non-commercial sports entities, aimed at supporting the growth of the UAE’s sports sector and strengthening the country’s position as a global sports hub.
The exemption is established under Cabinet Decision No. (1) of 2026, issued pursuant to Federal Decree-Law No. 47 of 2022 on corporate taxation. It is designed to encourage sustainable development in sports, align with international sports tax practices, and enhance the sector’s contribution to the national economy.
Eligibility for Corporate Tax Exemptions UAE for Non-Commercial Sports Entities
The tax relief applies to sports organisations, international sports entities, and selected supporting bodies operating on a non-commercial basis. To qualify for the corporate tax exemptions UAE for Non-Commercial Sports Entities, they must :
- Focus primarily on promoting, organising, managing, or developing one or more sports at a regional or international level.
- Be formally recognised by the Ministry of Sports or another competent authority.
- Use all income and assets exclusively for operational or developmental purposes that support its sporting objectives.
This ensures that the exemption benefits genuine non-profit sports organisations while maintaining regulatory compliance.
Safeguards to Prevent Misuse
To protect the integrity of the exemption, the Ministry has set rules preventing the personal use of income or assets by shareholders, members, founders, or trustees. Exceptions are only allowed for government entities, public benefit organisations, or approved sports institutions.
These safeguards promote transparency and accountability in the use of the corporate tax exemptions UAE for non-commercial sports entities.
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Application Process for Sports Entities
Eligible organisations must submit an application to the Federal Tax Authority (FTA) with all required documentation. The FTA reviews applications to verify eligibility, ensure compliance, and confirm that applicants meet all conditions.
Because the Corporate Tax regime in the UAE is still relatively new, careful structuring and documentation are essential.
Importantly, even organisations benefiting from exemptions must consider wider Corporate Tax planning implications. For example, entities that carry out mixed activities (commercial and non-commercial) or are part of broader group structures may need to evaluate whether their current tax position is efficiently structured.
In this respect, we recommend reading our detailed guide:
Are You Leaving UAE Corporate Tax Losses on the Table?
Understanding how exemptions interact with tax losses, group relief, and other Corporate Tax mechanisms is crucial for long-term compliance and efficiency.
Boosting the UAE Sports Sector
This corporate tax exemptions UAE forms part of the government’s broader strategy to develop the national sports ecosystem, attract investment, and position the country as a premier destination for international sports activities. By encouraging sustainable growth, the initiative aims to increase participation, improve professional standards, and strengthen the sector’s contribution to the economy.
Conclusion
Navigating the corporate tax exemptions UAE for non-commercial sports entities process can be complex. At WellTax, we provide comprehensive support to help organisations manage every step with confidence, including:
- Assessing eligibility for corporate tax exemption
- Preparing and submitting applications to the FTA
- Providing ongoing corporate tax compliance support
- Advising on corporate tax planning for non-commercial and sports entities
With our assistance, sports organisations can stay focused on their core mission while ensuring full compliance with UAE tax regulations. You can discover more about our services related to corporate tax incentives, exemptions, and reliefs in the following page.