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Co-Founder & CEO movingo
Editor
Author
Iakov Kukushkin
Copywriter, Journalist
Mar 03, 2026
The UAE has a long history of hosting world-class sporting events, including the Abu Dhabi Grand Prix (formula-1), the Dubai World Cup (horse racing), the Mubadala Abu Dhabi Open (tennis), the Dubai Desert Classic (golf), and the UAE Tour (cycling). The UAE government has taken another step towards developing sports in the country by exempting sports organizations from Corporate Tax in 2026.
However, there are some important aspects to consider when applying for this exemption. In this article, we will discuss these aspects in more detail.
However, there are some important aspects to consider when applying for this exemption. In this article, we will discuss these aspects in more detail.
- Overview of the new initiative
- Key definitions you need to know
- Understanding the 2026 exemption
- Who qualifies as a tax-exempt sports club in Dubai?
- How to apply for Corporate Tax exemption
- Documentation requirements for exemption
- Commercial revenue vs. exempt revenue
- How movingo helps businesses
- Sports entities CT exemptions FAQ
Overview of the new initiative
On February 9th, 2026, the Ministry of Finance in the UAE officially released Cabinet Decision No. 1 for 2026. The goal of this initiative is to exempt certain non-profit sports organizations from the usual 9% Corporate Tax.
By following international best practices, the UAE is basically inviting sports governing bodies from around the world to open their offices here without having to worry about federal taxes on their main activities. The main goal of the new initiative is to turn the UAE into a global sports hub.
By following international best practices, the UAE is basically inviting sports governing bodies from around the world to open their offices here without having to worry about federal taxes on their main activities. The main goal of the new initiative is to turn the UAE into a global sports hub.
Key definitions you need to know
The government has made a decision to introduce new categories of exemption from Corporate Tax.
Understanding the 2026 exemption
Essentially, if you are a non-profit sports organization, you will now be exempt from Corporate Tax, retroactive to June 1, 2023. However, this is not a get-out-of-jail-free card for every business that has "sports" in its name. The exemption is only for those businesses whose sole purpose is to promote and develop the sport, rather than generate profit for shareholders.
Let's see if your business meets the requirements of the new initiative.
Who qualifies as a tax-exempt sports club in Dubai?
In Dubai, eligibility depends on "non-profit status." A private gym or a profit-making padel club is likely not eligible. To be considered a sports club that is exempt from certain regulations, you must:
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Be formally recognized by the Ministry of Sports or the Dubai Sports Council.
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Operate as a nonprofit/noncommercial entity.
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Ensure that the governance structure is such that no "private benefit" (dividends) is paid out to founders or members.
Conditions for exemption
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Direct alignment
You should only engage in activities that are directly related to your sporting goals. -
Exclusive use of funds
All money earned should be reinvested in the sport or used to cover necessary and reasonable operating expenses. -
No personal gain
Income can only be used for the benefit of the organization, not for the personal gain of the owners, trustees, or founders, unless they are also qualifying public benefit entities. -
Prompt rectification
If you accidentally violate a condition, you must correct it immediately and implement procedures to prevent it from happening again. Otherwise, you risk losing your status for the entire tax period.
How to apply for Corporate Tax exemption (Sports UAE)
💡 The exemption is not automatic. Even if you meet all the criteria, you will still be considered a "Taxable Person" unless the FTA specifies otherwise.
Before applying for exemptions, you must obtain a Corporate Tax Registration Number (TRN) through the EmaraTax portal. Then, file a formal exemption application within 60 business days after the end of the tax period in which you met the conditions. The FTA will review your documents. If approved, the exemption will take effect at the start of the specified tax period.
To speed up the process and avoid errors when submitting documents, you can consider delegating this task to professionals who can take care of it for you. For example, we can help you out with that.
Documentation requirements for exemption
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Founding documents
Memorandum and Articles of Association (MOA/AOA) clearly state the nonprofit nature of your organization. -
Registration certificate
Proof of registration with the Ministry of Sports. -
Financial statements
Audited reports detailing exactly where the funds are spent. -
Operational logs
Evidence that your activities are aligned with your "main objective.”
Commercial revenue vs. exempt revenue
This is where many organizations struggle. The line between supporting the sport and running a business can be difficult to navigate:
- Exempt revenue
Includes member dues, grants, and income from organizing tournaments or coaching clinics that directly contribute to the development of the sport.
- Commercial revenue
If your sports organization starts running a high-end retail store or a real estate portfolio as a side hustle, which is not directly related to the sport, this specific income might be subject to taxation - or worse, it could jeopardize your entire tax-exempt status.
How movingo helps businesses
Whether you are involved in sports, trade, or artificial intelligence, every company operating in the UAE must take certain legal steps to ensure compliance with the law. This includes paperwork for incorporation, registration with the Corporate Tax, maintaining accurate financial records, obtaining visas for family and employees, and addressing other daily operational issues that may arise.
This is where we come in to help. We have already assisted more than 400 businesses in starting operations in the UAE, saving them over AED 5 million in fines. Let's talk about how we can assist you.
Need a hand running your business in the UAE? movingo'll take care of it:
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Accounting: financial order for businesses and freelancers. - Taxes: meeting deadlines, compliance, avoiding penalties.
- Company formation: paperwork you could need, from business plan to company incorporation.
- Visas: documents for entry and stay, employees and families relocation.
Sports entities CT exemptions FAQ
Yes, but only if they are not for commercial purposes. Private, profit-making sports clubs (such as commercial gyms or sports academies) usually do not qualify and are subject to the normal 9% tax rate.
The purpose is non-commercial, with income reinvested in sports expenses. There are no benefits for founders or other private individuals, and official registration is required with the Ministry of Sports or local bodies.
Yes, these organizations must register to be transparent with the regulatory authorities.
