The Government has announced it will waive VAT on the X Factor winner's single, as all the proceeds will once again be donated to charities caring for sick children.
For the sixth year running the Treasury will make a donation equivalent to the tax paid on sales of the single to the charities involved.
The song, yet to be announced, will become available to buy after the winner of the ITV singing contest is crowned during the live final on Sunday, December 11.
The donation from Cowell's record company, Simco Limited, will be at least 20p for each download sold in the UK.
Cowell said: "Once again, I am thrilled that the proceeds from The X Factor 2016 charity single will be going to Shooting Star Chase and Together for Short Lives.
"The main reason for doing this is that these charities help families and kids through incredibly difficult times.
"As always, we hugely appreciate the incredible support from the public."
Shooting Star Chase is a leading children's hospice charity caring for babies, children and young people with life-limiting conditions, and their families.
Together for Short Lives is the leading charity for UK children's palliative care, supporting those who help, love and care for children and young people who are unlikely to reach adulthood.