Retail sale of tobacco products in specialized stores

Excluded · 9% taxable

Forensic Analysis

DZ requiredSubstance: HIGHAI-derived

Retail sale to end consumers is explicitly categorized as an Excluded Activity. Under MD 229 of 2025, income from tobacco retail is subject to the standard 9% rate regardless of Free Zone status. Forensic audit will focus on the reconciliation between Excise Tax digital tax stamps (DTS) and reported Corporate Tax gross income.

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Legal Reference

Ministerial Decision No. 229 of 2025, Article 3, Clause 1(a)

Audit Red Flag

Artificial fragmentation of sales where retail transactions are disguised as 'Wholesale/Distribution' to non-Free Zone persons to exploit the 0% regime

3 licensable activities under this classification

Cigarettes SellingExternal approval required

Electronic Cigarettes & Accessories TradingExternal approval required

Tobacco TradingExternal approval required

Which UAE zones permit this activity?

Scout checks the current permission status for this activity across every UAE zone against your specific structure.

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