FIFA, US Treasury Discuss Federal Tax Exemption for 2026 World Cup Teams

Discussions are currently underway between the International Federation of Association Football (FIFA) and the US Department of the Treasury regarding the possibility of granting a federal tax exemption to the national teams participating in the 2026 FIFA World Cup finals, which the United States will co-host. Although no official decision has been reached yet, reports indicate that negotiations are progressing positively, strengthening FIFA's aspirations to reach a final agreement on the matter.

RMC network clarified that this proposed exemption would be limited to federal taxes only, and would not include local or state-imposed taxes. In this context, The Guardian newspaper reported that participating teams would naturally benefit from these financial advantages if approved, reflecting the desire of all involved parties to facilitate regulatory and financial procedures for the competing nations in the upcoming global event.

Given that Canada and Mexico, who are co-hosting the World Cup, have granted tax exemptions to teams playing matches on their soil, the US faces expectations to align with its co-hosts in organizing the tournament. FIFA officials express significant confidence in securing this exemption due to the notable progress in discussions with US authorities, especially as the tournament will feature widespread participation for the first time in its history.

Coinciding with these financial developments, FIFA previously announced a 15 percent increase in revenues allocated to participating nations. Furthermore, the prize money for the winner of the 2026 World Cup will reach $50 million, compared to $33 million for the runner-up. These measures aim to enhance the financial solvency of national federations and ensure the best possible conditions for teams within the framework of the tournament's new expansion.