Morocco holds two layers of US tax protection for World Cup earnings

Morocco enters the 2026 World Cup with two potential routes for shielding federation-level earnings from US federal taxation, combining a longstanding bilateral tax treaty with a new exemption mechanism negotiated by FIFA.

The first layer comes from the US-Morocco income-tax convention signed in 1977 and in force since 1981. The agreement is intended to prevent the same income from being taxed in both countries and gives Morocco an advantage held by relatively few World Cup participants.

The Guardian reported in April that Morocco was among only 18 qualified countries covered by US double-taxation agreements and one of three African qualifiers with such a treaty, alongside Egypt and South Africa.

That protection initially placed the Royal Moroccan Football Federation ahead of African associations from countries without comparable agreements, which faced federal tax liabilities on some tournament earnings and delegation costs.

A second layer emerged after FIFA secured a route allowing all 48 participating associations to apply for exemption from US federal income tax under section 501(c) of the US tax code.

KPMG said the arrangement could protect approved national associations from federal tax on tournament-level earnings. For Morocco, that means the FRMF may rely both on its existing treaty framework and the wider FIFA-backed exemption route.

The distinction matters because FIFA has raised its financial distribution to the 48 participants to $871 million. Each association will receive $10 million in qualification money and $2.5 million for preparation, before subsidies for delegation costs and additional performance-related payments.

The two protections do not create a blanket tax-free World Cup.

The FIFA arrangement applies primarily to association-level income and depends on an application for tax-exempt status. State and local taxes, which vary between host cities, may still apply.

Players also remain exposed to US taxation on income linked to matches and commercial activities performed in the country. That can include bonuses, salaries attributed to the tournament period, advertising appearances and sponsorship work.

Individual treatment will depend on residency, contract structure and treaty rules, meaning Moroccan players based in Spain, France or Saudi Arabia may face different reporting and payment obligations.

The FRMF’s advantage is therefore not that every World Cup dollar escapes taxation, but that it has two legal routes for limiting federal exposure while many rival associations entered the tournament with only the FIFA mechanism.