Islamabad, April , 2025 — In a significant move aimed at aligning with international norms for hosting global sports events, the Federal Board of Revenue (FBR) has officially granted income tax exemption to the International Cricket Council (ICC) and ICC Business Corporation (IBC) for all income earned in connection with the upcoming ICC Champions Trophy 2025 in Pakistan.
The exemption was notified through S.R.O. 579(I)/2025, issued by the FBR in accordance with sub-section (2) of Section 53 of the Income Tax Ordinance, 2001, following approvals by the Economic Coordination Committee (ECC) and the Federal Cabinet.
Scope of the Tax Exemption
The tax relief applies to income earned by:
- ICC and IBC
- Their employees, officials, agents, and representatives
- Players, coaches, and medical staff from ICC member countries
- Partners and media representatives
- Other non-resident delegates associated with the ICC Champions Trophy 2025
These exemptions apply exclusively to non-resident individuals and entities, ensuring that income generated in connection with the tournament is not subject to Pakistani income tax.
No Exemption for Local Entities
While foreign participants benefit from tax relief, Pakistani residents, including the Pakistan Cricket Board (PCB) and local vendors or service providers, will remain fully taxable under existing income tax laws. Furthermore, the exemptions do not extend to Sales Tax or Federal Excise Duty (FED).
This means all domestic transactions and local earnings connected to the tournament will still fall under the scope of national tax regulations.
Global Standards for Hosting International Sports Events
The decision to provide income tax exemptions for the ICC and its affiliates follows a standardized hosting rights agreement signed between Pakistan and the ICC. Such exemptions are widely considered best practices globally, as they help facilitate international participation, remove administrative hurdles, and enhance a country’s prospects of hosting major sporting events.
This provision was also a key condition for securing the hosting rights for the ICC Champions Trophy 2025 and is not expected to result in any significant revenue loss for Pakistan’s exchequer.
Legal Notification and Amendments
According to the FBR notification, the exemption has been added to the Second Schedule of the Income Tax Ordinance, 2001, as Clause 98AA in Part I, following the omission of the previously existing Clause 98A.
The clause specifically grants exemption on any income derived by ICC, IBC, and related personnel, excluding Pakistani residents, from all activities linked to the ICC Champions Trophy 2025 hosted in Pakistan.
