---
title: "Exempt Person"
url: https://www.boruconsulting.com/glossary/exempt-person
type: DefinedTerm
role: status
jurisdiction: [UAE]
reviewed: 2026-11-10
modified: 2026-11-10
---

# Exempt Person

Role: Status | Jurisdiction: UAE

A person that the UAE Corporate Tax Law places outside corporate tax altogether, such as government entities, businesses extracting natural resources, qualifying public benefit entities, qualifying investment funds and qualifying pension funds. Several categories must apply to, or notify, the Federal Tax Authority, and the status lasts only while its conditions are met.

Being exempt is not the same as being taxed at 0%: an exempt person stands outside the regime, while a qualifying free zone person stays inside it, files returns and can lose its rate. Cabinet Decision No. 55 of 2025 extended exemption to certain foreign companies wholly owned and controlled by an exempt person.

## Legal basis
- Federal Decree-Law No. 47 of 2022, Article 4
- Cabinet Decision No. 55 of 2025

## Related concepts
- Distinct from: [Qualifying Free Zone Person (QFZP)](https://www.boruconsulting.com/glossary/qualifying-free-zone-person) (a taxable person at 0%, not one outside the regime)
- Tax status of: [Qualifying Investment Fund (QIF)](https://www.boruconsulting.com/glossary/qualifying-investment-fund) (the status a qualifying fund applies for)
- Related: [UAE Corporate Tax](https://www.boruconsulting.com/glossary/uae-corporate-tax)

## Analysis that discusses it
- [A UAE family structure is taxable at 9% until it earns its exemption](https://www.boruconsulting.com/blog/uae-corporate-tax-exemption-family-structures) (Corporate Structuring, 2026-10-10)
- [A UAE exemption now has a deadline, and the parent must file first](https://www.boruconsulting.com/blog/fta-decision-15-2026-exemption-deadlines) (Regulatory Intelligence, 2026-10-14)
- [A DIFC or ADGM fund can be tax-exempt, the manager cannot](https://www.boruconsulting.com/blog/difc-adgm-fund-qualifying-investment-fund) (Corporate Structuring, 2026-10-19)
- [UAE Cabinet Decision 209 of 2025. Exchange of Information and Record-Keeping](https://www.boruconsulting.com/blog/uae-cabinet-decision-209-eoi-accounting) (Regulatory Intelligence, 2026-06-05)

Canonical: https://www.boruconsulting.com/glossary/exempt-person

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Source: https://www.boruconsulting.com/glossary/exempt-person