Zurich, Switzerland – FIFA has reportedly failed to secure a tax exemption from the United States government for revenue earned by national football associations participating in the 2026 FIFA World Cup, which will be co-hosted by the U.S., Canada, and Mexico. This development could subject the earnings of more than 30 nations' teams to U.S. federal income taxes, impacting prize money, appearance fees, and other commercial revenues.

The inability to secure an exemption marks a significant departure from standard practice at previous World Cups, where host nations typically grant such concessions to maximize financial benefits for participating federations. The potential taxation could reduce the net income available to national teams, particularly affecting those from smaller or developing countries that rely heavily on World Cup earnings to fund their football development programs and infrastructure. Discussions between FIFA and U.S. authorities, including the Treasury Department and Internal Revenue Service (IRS), have reportedly not yielded a resolution on the matter.

Under current U.S. tax law, income earned within the country by foreign entities or non-resident aliens is generally subject to federal taxation. Without a specific exemption, national football associations could see a portion of their gross earnings withheld. While specific rates can vary based on the nature of the income and any applicable tax treaties between the U.S. and a team's home country, certain types of income for non-resident entities may face a statutory withholding tax rate of up to 30%. This situation contrasts sharply with recent World Cups.

Key details regarding the situation include:

  • Host Nations: The 2026 FIFA World Cup will be jointly hosted by the United States, Canada, and Mexico. The issue specifically pertains to earnings generated within U.S. territory.
  • FIFA's Standard Practice: FIFA routinely seeks tax exemptions from host governments for tournament-related earnings to ensure that the maximum possible funds reach participating national associations.
  • Previous World Cups: Host nations for recent tournaments, such as Brazil (2014), Russia (2018), and Qatar (2022), all granted broad tax exemptions for participating teams and tournament-related income. The U.S. does not have a general sports tax exemption for international events.
  • Affected Income: The potential taxation could apply to various revenue streams, including prize money awarded for tournament performance, appearance fees, and commercial revenues generated by teams during their presence in the U.S.
  • Impact on Development: For many national federations, World Cup earnings represent a crucial source of funding for youth academies, coaching development, facilities, and grassroots football programs. Any reduction in these funds could hinder long-term sports development.

As the 2026 World Cup approaches, national football associations will need to account for potential U.S. tax liabilities in their financial planning. While FIFA may continue discussions with U.S. authorities, the current status indicates that teams could face a substantial reduction in their net earnings from the tournament hosted in the United States. The implications will become clearer as teams qualify and financial arrangements are finalized closer to the event.