Tax Exemption for Individuals and Entities Involved in the 2026 World Cup
According to Mexico’s Secretariat of Finance and Public Credit (SHCP), this tax exemption stems from commitments made since 2018 through the Government Guarantee and Declaration signed by FIFA. In this agreement, Mexico pledged to facilitate operational conditions for the tournament’s development.
Who is Eligible for Tax Exemption?
Individuals and legal entities participating in the creation, development, and execution of activities related to the 2026 FIFA World Cup will be exempt from taxes, as proposed in the 2026 Federal Tax Income Package.
Details of the Proposed Exemption
The Secretariat of Finance proposes to “release individuals and legal entities from tax and administrative burdens who participate in the organization, development, and execution of activities related to the FIFA 2026 World Cup.”
- The proposed exemption covers tests, matches, and events associated with the 2026 World Cup from compliance with formal payment obligations, transportation requirements, retention, collection, and payment derived from the fiscal regulations resulting directly from these activities starting from the last quarter of 2025.
- FIFA must identify participating individuals and entities directly involved in the event organization to the tax authority. In turn, the revenue body will issue general rules to classify beneficiaries and define applicable exemption types.
Economic Impact and Timing
The Mexican government anticipates a “historic opportunity” in 2026, amidst the arrival of millions of tourists for the World Cup, to stimulate economic, tourism, and social benefits. The influx of these visitors could boost sectors like transportation, hospitality, commerce, and digital services.
Relevance of FIFA’s Commitment
The commitments made by Mexico through the Government Guarantee and Declaration in 2018 with FIFA are crucial for ensuring favorable conditions for the successful execution of the 2026 World Cup. This tax exemption is a part of those commitments, aiming to encourage collaboration and support from various sectors.
Key Questions and Answers
- Who proposed the tax exemption? The Secretariat of Finance and Public Credit (SHCP) proposed the tax exemption for individuals and entities involved in the 2026 World Cup.
- What activities are covered under this exemption? The proposed exemption covers tests, matches, and events associated with the 2026 World Cup.
- What sectors could benefit from this tax exemption? The transportation, hospitality, commerce, and digital services sectors could see growth due to the influx of tourists during the 2026 World Cup.
- How will FIFA’s role be involved in this tax exemption? FIFA must identify participating individuals and entities directly involved in the event organization for them to be eligible for tax exemptions.
