FIFA pressure US government into surprise decision impacting all 48 World Cup nations

FIFA has prompted the US government to make a last-minute decision which impacts all 48 participating World Cup nations.

With just 43 days to go until the 2026 World Cup, which will take place across North America, FIFA are reportedly close to agreeing a significant deal with the US Treasury after lengthy negotiations.

The potential agreement relates to federal taxes, with The Guardian reporting that just 18 of the 48 nations had agreed on Double Taxation Agreements (DTAs) with the United States government in February, meaning they were protected by tax exemptions ahead of the tournament.

England and Spain were among the 18, with Thomas Tuchel and Luis de la Fuente only needing to pay tax in the aforementioned nations rather than in the US as well.

There were concerns that smaller countries such as Curaçao and Cape Verde would be heavily impacted by tax liabilities, with associations initially expected to pay tax at federal, state and city levels.

FIFA, a not-for-profit organisation, has had tax-free status in the US since 1994, but that exemption did not apply to the 48 qualifiers.

FIFA pressure prompts US government decision change

However, a new report from The Guardian, published on Wednesday (April 29), claimed FIFA are now close to agreeing a last-minute tax exemption for all 48 nations after discussions with the US Treasury, which should mean the associations are exempt from federal taxes, although they may still be required to pay state and city taxes.

The outlet explained: “Fifa is understood to have received an undertaking that national associations can apply to be tax exempt under section 501(c)(3) of the treasury’s RInternal revenue Code.

“Although a successful application is not guaranteed, FIFA has been reassured that it is likely to be granted if applicants follow the proper procedures.

“The main requirements for a tax exemption under section 501(c)(3) are that the organisation in question must not benefit any individual private shareholders or take part in any political activity, obligations that a national governing body should meet comfortably.”

Canada and Mexico have already granted tax exemptions to all national associations that will compete in the tournament.

FIFA has also increased prize money by 15 percent, increasing the total prize fund to £645 million.

The tournaments get underway on June 11 with Mexico hosting South Africa in the opener.