UAE Corporate Tax for Online Sellers 2026: the 9% Rate, Permanent Establishment and Small Business Relief

UAE corporate tax is the biggest blind spot in Gulf seller content. When we ran demand research in September 2026, Google autocomplete returned nothing at all for the phrasings sellers would use, while YouTube videos explaining the 9% rate had pulled tens of thousands of views each — roughly 67,000 across four explainers. That gap means the people who need the answer are looking for it, and nobody has written it for online sellers. Here is what the law actually says, with the two clauses that matter most to a marketplace seller and a clear line around what we could not verify.

What is the UAE corporate tax rate?

Federal Decree-Law No. 47 of 2022, Article 3(1), sets two rates: "0% (zero percent) on the portion of the Taxable Income not exceeding the amount specified in a decision issued by the Cabinet" and "9% (nine percent) on Taxable Income that exceeds" that amount. Article 3(2) does the same for a Qualifying Free Zone Person: 0% on Qualifying Income, 9% on taxable income that is not Qualifying Income. The Ministry of Finance states that the regime applies "for financial years beginning on or after 1 June 2023".

Does corporate tax apply to a seller based outside the UAE?

Only if you fall into one of three boxes. Article 11(4) defines a Non-Resident Person as one who is not resident and that either "Has a Permanent Establishment in the State as under Article 14", "Derives State Sourced Income as under Article 13", or "Has a nexus in the State as specified in a decision issued by the Cabinet".

The second box looks alarming for exporters, because Article 13(2)(a) lists "Income from the sale of goods in the State" as State Sourced Income. Read alone, that would catch every Indian brand selling a single unit on noon. Two other articles stop it short of that.

• Article 45 sets withholding tax at 0%. "The following income shall be subject to Withholding Tax at the rate of 0% (zero percent) or any other rate as specified in a decision issued by the Cabinet" — covering categories of State Sourced Income derived by a Non-Resident "insofar such income is not attributable to a Permanent Establishment". State Sourced Income without a permanent establishment is, on the face of the law, the withholding-tax route, and that rate is currently zero.
• Article 14(3) carves storage and delivery out of "permanent establishment". This is the clause every FBN and FBA seller should read. A fixed or permanent place in the UAE "shall not be considered a Permanent Establishment" if it is used solely for "Storing, displaying or delivering of goods or merchandise belonging to that Person", or "Keeping a stock of goods or merchandise belonging to that Person for the sole purpose of processing by another Person", or purchasing goods.

In plain terms: holding your stock in a marketplace warehouse in the UAE, on its own, is the kind of activity Article 14(3) says is not a permanent establishment. That is a much better starting point than most exporters assume. It is a starting point, though, not a conclusion — Article 14(1)(b) also creates a permanent establishment "Where a Person has and habitually exercises an authority to conduct a Business or Business Activity in the State on behalf of the Non-Resident Person", so an agent with contracting authority is a different question from a warehouse. And Article 14(1)(c) leaves "any other form of nexus" to a Cabinet decision we could not read.

What if the seller is a UAE company?

Then you are a Resident Person under Article 11(3)(a) and taxable on worldwide income under Article 12(1). A free zone company can be a Qualifying Free Zone Person and pay 0% on Qualifying Income under Article 3(2), subject to conditions in Article 18 that we have not set out here because they are detailed and they are exactly where free zone sellers get caught — our mainland versus free zone licence guide covers why the 0% headline is not a plan on its own.

The relief most small sellers care about is Article 21, Small Business Relief: a resident taxable person "may elect to be treated as not having derived any Taxable Income" where revenue does not exceed a threshold set by the Minister. The FTA confirmed the threshold in a press statement dated 3 August 2026: the relief "treats an eligible resident person as having earned no taxable income for Corporate Tax purposes if its revenue does not exceed AED 3 million for the relevant tax period and all previous tax periods". Note "and all previous tax periods" — one big year permanently ends your eligibility. Note also that Article 21(2) switches off exempt income, reliefs, deductions and tax loss relief while you are in it.

What are the deadlines?

The FTA has been explicit that eligibility for Small Business Relief "does not remove the obligation to file a Corporate Tax return". Sellers who assume relief means nothing to do are the ones paying late-filing penalties.

A worked example in dirhams, riyals and rupees

Illustrative conversions on this page use AED 1 = ₹24.1 and SAR 1 = ₹23.6, the rates we used in September 2026. They move daily, so treat every rupee figure as an order of magnitude, not a quote.

Take a Dubai-registered mainland company selling on noon and Amazon.ae, with AED 2.4 million of revenue and AED 520,000 of profit after all costs for the year to 31 December 2026.

Note that revenue is AED 2.4 million, under the AED 3 million Small Business Relief ceiling, so this company could instead elect the relief and be treated as having no taxable income — giving up its deductions and loss relief for that period in exchange. Whether that is the better answer depends on whether you are carrying tax losses, which is a question for your accountant and not for a blog. The same seller operating in KSA faces a different stack entirely: 15% VAT, ZATCA e-invoicing, and Saudi rules on zakat and income tax that we have not covered here because we could not verify the licensing and registration position for a foreign company — misa.gov.sa served us a navigation shell and my.gov.sa returned 403.

What we could not verify on this page

• The AED 375,000 0% band. Set by Cabinet decision, not by the Decree-Law. We could not retrieve Cabinet Decision No. 116 of 2022. Reported figure, not verified here.
• The "nexus" Cabinet decision under Articles 11(4)(c) and 14(1)(c). Not retrieved, so we cannot tell you whether any nexus rule reaches a marketplace seller with no UAE presence.
• Qualifying Income conditions under Article 18 and the Cabinet and Ministerial decisions that define them. Not set out here.
• Whether a non-resident seller with stock in a UAE marketplace warehouse is definitively outside permanent establishment. Article 14(3) is favourable on its face, but the determination depends on your full UAE footprint and contracts. Get it confirmed.
• Saudi corporate income tax and zakat treatment for a foreign seller on noon KSA. Unverified, not asserted.

Want the selling side run while your accountant runs the tax side?

Corporate tax registration, returns and the Small Business Relief election belong with a qualified adviser in the UAE. What sits next to it — keeping the profit number worth taxing — is what we do. Blooprint Automation is a Bengaluru marketplace agency, founded 2021, and our noon account management service covers catalogue, pricing, fulfilment choices and ads for brands selling into the UAE and KSA. If you want to see where the margin actually goes before tax gets near it, read our noon seller fees guide, then talk to us about running the account.

FAQ

What is the UAE corporate tax rate for online sellers? Article 3 of Federal Decree-Law No. 47 of 2022 sets 0% on taxable income up to an amount fixed by Cabinet decision and 9% above it. The figure commonly reported for that band is AED 375,000, but it sits in a Cabinet decision we could not retrieve, so we report it rather than assert it.

Do I pay UAE corporate tax if I sell from India into the UAE? Only if you are a Non-Resident Person under Article 11(4), meaning you have a permanent establishment, derive State Sourced Income, or fall under a Cabinet nexus rule. Withholding tax on State Sourced Income not attributable to a permanent establishment is currently 0% under Article 45.

Does storing stock in a UAE marketplace warehouse create a permanent establishment? Article 14(3) says a fixed place used solely for storing, displaying or delivering your own goods, or keeping stock for processing by another person, is not a permanent establishment. That is favourable but it is not a blanket answer; an agent in the UAE with authority to conclude business for you is a separate trigger under Article 14(1)(b).

What is Small Business Relief and what is the threshold? Under Article 21 a resident taxable person can elect to be treated as having derived no taxable income. The FTA stated on 3 August 2026 that this applies where revenue does not exceed AED 3 million for the relevant tax period and all previous tax periods. You must still register and still file, on a simplified return.

When is the corporate tax return due? Within 9 months of the end of the tax period, under Articles 48 and 53. The FTA confirmed that a financial year ending 31 December 2025 means a return and payment by 30 September 2026.

Is corporate tax the same as VAT? No. VAT at 5% is a transaction tax collected from the customer on the sale. Corporate tax at up to 9% is charged on profit and paid by the business. They have separate registrations, separate returns and separate deadlines.