Article (2)
Exemption from Corporate Tax
1. For the purposes of Paragraph (i) of Clause (1) of Article (4) of the Corporate Tax Law, an
International Sports Entity, Sports Entity, or Supporting Entity that is a Taxable Person shall
be exempt from Corporate Tax, provided that all of the following conditions are met:
a. It shall not conduct any business or business activities, other than activities directly
related to the fulfilment of its main or exclusive purposes, as the case may be.
b. Its income or assets shall be used exclusively to serve its main or exclusive purposes,
as the case may be, or to pay any necessary and reasonable expenditure incurred in
connection therewith.
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Cabinet Resolution of 2026 Exempting Certain Sports Entities from Corporate Tax for the Purposes of Federal
Decree by Law of 2022 Regarding Corporate and Business Tax 3
c. No part of its income or assets shall be paid or otherwise made available for the
personal benefit of any shareholder, member, trustee, founder, or settlor thereof,
unless such person is any of the following:
1) A Qualifying Public Benefit Entity;
2) A Government Entity;
3) A Government-Controlled Entity;
4) An International Sports Entity, provided that no part of the income or assets of such
entity is paid or otherwise made available for the personal benefit of any
shareholder, member, trustee, founder, or settlor thereof, unless such person is an
entity specified in Subparagraphs (1), (2), (3), and (7) of this Paragraph;
5) A Sports Entity;
6) A Supporting Entity;
7) Any other entity whose main purpose is the promotion, management, or
development of one or more sports, provided that such income or assets are used
exclusively for the fulfilment of such purposes or for the payment of any necessary
and reasonable expenditure incurred in connection therewith, and provided that
no part of its income or assets is paid or otherwise made available for its own
benefit or for the personal benefit of any shareholder, member, trustee, founder,
or settlor thereof, unless such person is an entity specified in Subparagraphs (1) to
(6) of this Paragraph; and
8) Any other entity that may be specified by a decision issued by the Minister.
d. Any other conditions that may be specified by a decision issued by the Minister.
2. The International Sports Entity, Sports Entity, or Supporting Entity shall provide the
Authority, upon request and within the specified period, with all data, information, and
documents necessary to verify that the entity satisfies the relevant definition set forth in
