FIFA Retains Tax Privileges as Mexico Reduces Benefits Ahead of 2026 World Cup

Original article: La FIFA no pierde ni en impuestos: México recorta privilegios tributarios del Mundial 2026

The Mexican government has achieved what once seemed like an irreversible concession: shortening tax privileges from 2028 to just this year for the FIFA granted under Enrique Peña Nieto’s administration (2012-2018) to secure the venue for the 2026 World Cup. The original tax shield, which extended to the federation, its affiliates, suppliers, and commercial partners, has now been reduced to a temporary benefit applicable only for the last quarter of 2025 and the remainder of this fiscal year.

According to the newspaper La Jornada, as of now, the projections of the fiscal impact of these concessions are unknown, and even firms focused on tax matters do not have information about their reach.

Consulting firm KPMG raised concerns about the ambiguity surrounding the local application of these governmental guarantees signed during Peña Nieto’s term. Although Mexico promulgated “broad federal exemptions” for FIFA and designated entities, there remain doubts regarding the implementation on a national scale and coordination with the host country’s regulations. It is evident that Mexico’s fiscal leniency has historically been much more generous compared to its partners the United States and Canada.

While Washington negotiated limited benefits in customs and tax matters, allowing FIFA to deal directly with each venue, Mexico provided comprehensive, overreaching guarantees across administrations. Now, this excess has been partially corrected.

The renegotiation was requested by Mexican President Claudia Sheinbaum, recognizing that the original agreement impacted national finances and placed the country at a legal disadvantage.

What economic implications does this adjustment have? The federal Executive forecasts an influx of $3 billion from the event, a figure equivalent to 0.5 percent of the annual public budget, slightly less than what the IEPS tax collected in April alone this year. However, there is still no official calculation of the fiscal cost of the exemptions granted.

The opacity extends to the so-called “partners” of FIFA –Coca-Cola, VISA, Hyundai, KIA, Aramco, and Qatar Airways– as the Tax Administration Service (SAT) has not clarified whether these companies, which function as the marketing arm of the organization, will also benefit from the incentives.

The 2026 fiscal miscellaneous more precisely details who falls into the benefit package: any contractor with a direct contractual link to FIFA, the CMF 2026 Society, or its subsidiaries. It also includes broadcasters who purchased transmission or commercial exploitation rights for World Cup content. Roberto Colín, from the College of Public Accountants of Mexico, clarified there are three types of beneficiaries. First, the societies or associations directly linked to FIFA, validated by a national association. Second, service providers to the organizers, benefiting from reductions in VAT and IEPS. Third, the football players themselves, who are expected to pay 25 percent of income tax on their earnings from matches in Mexican territory.

The 2026 Federal Revenue Law is explicit: the benefit applies only to situations that “derive exclusively from the performance of the acts or activities” of the competition, starting from the last quarter of 2025. In December, the Ministry of Finance boasted of having dramatically reduced the duration of the privileges previously guaranteed by Peña Nieto through a government commitment to “broad and general fiscal benefits,” reported La Jornada.

Now, the reductions are limited to “the parties directly involved in the organization and celebration of the FIFA World Cup 2026”. The FIFA doesn’t lose any tax advantages, but Mexico is beginning to tighten its financial regulations.