Manufacture of tobacco products

Under MD 229 of 2025, 'Manufacturing of goods or materials' is a Qualifying Activity. Forensic auditors will verify the 'Substantial Transformation' test—ensuring the tobacco products undergo a significant change in form, fit, or function within the DZ. Income from incidental trading of finished tobacco products not manufactured by the entity may be disqualified if it exceeds the de minimis threshold.

Audit Red Flag

Artificial fragmentation of the value chain where 'simple assembly' or 'packaging' is misrepresented as 'manufacturing' to bypass the substantial transformation requirement.

Not sure which activity applies to you?

Scout maps your business description to the correct activity code automatically.