Tax Exempt
/ˈtæks ɪgˌzɛmpt/
Definitions
- (adj.) Exempt from the payment of certain taxes by law or regulation.
Nonprofit organizations often qualify as tax exempt entities.
- (n.) A status or condition that entitles a person or organization to exemption from tax liability.
The charity applied for tax exempt status to avoid paying federal income tax.
Related terms
See also
Commentary
Usage typically distinguishes between the adjective describing status and the noun referring to the condition itself; precision in context clarifies the intended meaning.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.