The UAE Cabinet has issued two landmark decisions aimed at strengthening the country’s tax transparency framework while providing targeted corporate tax relief to qualifying non-commercial sports entities. The measures reinforce the UAE’s commitment to international tax cooperation and sector-specific economic support.
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Enhancing International Tax Cooperation
Under Cabinet Decision No. 209 of 2025, the UAE has formalized and consolidated its legal framework governing the Exchange of Information Upon Request (EOIR) for tax purposes. The decision aligns the country’s practices with international standards and strengthens mechanisms for sharing tax-related information with foreign authorities.
The EOIR framework enables tax authorities to request and obtain relevant information from other jurisdictions to support tax compliance and combat tax evasion. The new decision unifies existing obligations into a single legislative structure, ensuring consistent implementation across financial institutions, businesses, and regulatory stakeholders.
The move builds on the UAE’s long-standing participation in global tax transparency initiatives. The country joined the OECD Global Forum on Transparency and Exchange of Information for Tax Purposes in 2010 and became a signatory to the Convention on Mutual Administrative Assistance in Tax Matters in 2017. It has also established an extensive network of double taxation agreements with more than 140 jurisdictions.
By reinforcing its exchange-of-information framework, the UAE further strengthens its position as a transparent, internationally compliant financial hub.
Corporate Tax Relief for Non-Commercial Sports Bodies
In a separate measure, Cabinet Decision No. 1 of 2026, issued under Federal Decree-Law No. 47 of 2022 on Corporate Tax, grants corporate tax exemptions to certain qualifying non-commercial sports entities.
The exemption applies to international sports organizations, sports federations, and selected supporting entities operating on a non-profit basis. To qualify, an entity’s primary purpose must be the promotion, organization, management, or development of sports at the international or regional level. Recognition by the Ministry of Sports or another competent authority is required.
The decision imposes strict governance conditions. Qualifying entities must:
- Operate exclusively for sporting objectives
- Avoid engaging in unrelated commercial activities
- Use income and assets solely for sporting purposes or necessary related expenses
- Refrain from distributing profits or assets for personal benefit, except in limited and regulated cases
Strategic Implications
These twin measures reflect the UAE’s balanced approach to fiscal policy: strengthening global compliance and transparency while offering targeted support to sectors that contribute to social and economic development.
For businesses and international investors, the enhanced transparency framework reinforces regulatory certainty and alignment with global tax standards. For the sports sector, the exemption provides structural clarity and financial support, further positioning the UAE as a regional and global sports hub.
Together, the decisions underscore the UAE’s commitment to maintaining a competitive, transparent, and internationally integrated economic environment.
