ICC Champions Trophy 2025: Tax exemption granted to income derived by IBC or ICC
ISLAMABAD: The Federal Board of Revenue (FBR) has granted income tax exemption to any income derived by ICC Business Corporation (IBC) or International Cricket Council (ICC) in connection with the ICC Champions Trophy 2025.
The FBR has issued an S.R.O. 579(I) 2025 to notify the said exemption.
These exemptions align with international best practices for hosting global sports events. Under the standardized hosting rights agreement between ICC and Pakistan, no taxes or deductions will be applied to ICC revenues, its subsidiaries, associates, officials, and non-resident delegates.
However, Pakistani residents, including the Pakistan Cricket Board (PCB), will remain subject to income tax on their earnings from the tournament. There will be no exemptions from Sales Tax and Federal Excise Duty (FED).
The tax exemption is not expected to result in a revenue loss, as it was a prerequisite for securing the tournament’s hosting rights.
According to the notification, in exercise of powers conferred under sub-section (2) of section 53 of the Income Tax Ordinance, 2001, the Board with the approval of the Federal Minister-in-charge pursuant to the approval of the Economic Coordination Committee of the Cabinet vide Case No. ECC
3810612025 dated 20.02.205 and ratified by the Federal Cabinet has directed that the following further amendments shall be made in the Second Schedule to the said Ordinance, namely:
In the aforesaid Schedule, in Part I, after omitted clause (98A), the following new clause shall be added, namely: ’(98AA) Any income derived by ICC Business Corporation (IBC) or International Cricket Council (ICC) or employees, officials, agents and representatives of IBC and ICC, officials from ICC members, players, coaches, medical doctors and officials of member countries, IBC partners and media representatives, other than persons who are resident of Pakistan, from ICC champions Trophy, 2025 hosted in Pakistan.
Copyright Business Recorder, 2025
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