Key Takeaways
- FIFA has reached an agreement with US Treasury officials to exempt national teams from federal taxes during the 2026 World Cup.
- Teams may still need to pay state and city taxes despite the federal exemption.
- The move follows a 15% increase in prize money agreed at the recent FIFA Council meeting in Vancouver.
FIFA is close to getting a tax exemption for all 48 nations competing in the 2026 World Cup. This comes after months of detailed discussions with the United States Treasury Department.
The governing body has achieved a major breakthrough in its talks. National football associations will likely avoid paying US federal taxes on their World Cup earnings. However, they might still face taxes at state and city levels.
Sources indicate that FIFA has received assurance that member associations can seek tax-free status under section 501(c)(3) of US tax law. This section applies to non-profit organisations. To qualify, an organisation must not serve private shareholders or engage in political activities. National football bodies should meet these requirements easily.
The negotiations also involved former President Donald Trump’s World Cup taskforce. FIFA itself has enjoyed tax-exempt status in America since the 1994 tournament. However, the organisation has struggled until now to extend this benefit to its member associations.
The other host nations, Canada and Mexico, have already granted tax exemptions to participating teams. The US decision will save national associations millions of dollars. This relief addresses concerns about high costs related to travel, hotels, and taxes.
Last month, reports revealed that several countries feared financial losses despite advancing in the tournament. This prompted FIFA to boost the prize fund. At a recent FIFA Council meeting in Vancouver, officials agreed to raise payments by 15%. The total prize pot now stands at $871 million (£645 million). Each of the 48 competing nations will receive at least $12.5 million.
FIFA has chosen not to comment on these tax discussions. An insider described the process as still developing.