The temporary tax compliance initiative allows eligible taxpayers to clear qualifying principal liabilities while receiving a 100% waiver on accrued penalties and late-payment interest.
The Zambia Revenue Authority (ZRA) has introduced an Extended Voluntary Disclosure Scheme (EVDS) aimed at helping taxpayers regularise outstanding tax obligations and strengthen voluntary compliance across the country.
The temporary initiative provides eligible taxpayers with a 100% waiver of accrued penalties and late-payment interest when they settle their outstanding principal tax liabilities. The scheme covers qualifying penalties and interest associated with tax periods up to August 31, 2026.
The EVDS officially commenced on September 17, 2026, and will remain open until December 31, 2026, giving taxpayers a defined period to review their tax affairs and address qualifying outstanding obligations.
Relief linked to principal tax payments
Under the scheme, the waiver is directly connected to the amount of principal tax that a taxpayer settles.
Where a taxpayer pays the full outstanding principal liability, eligible accrued penalties and interest can be waived in full. Where only part of the principal debt is settled, the corresponding proportion of qualifying penalties and interest can also be waived.
The arrangement gives taxpayers the option of settling their liabilities immediately or applying for a Time to Pay Agreement (TPA).
Taxpayers already operating under an active TPA are required to comply with their agreed payment schedules. Failure to meet the terms of an existing arrangement could result in its termination.
Who can participate?
The EVDS is designed to cover two broad categories of taxpayers.
The first includes taxpayers seeking to disclose previously undeclared income, transactions or other relevant information. The second covers taxpayers who have already declared their tax liabilities but have accumulated unpaid penalties and interest.
Participation requires taxpayers to meet specified conditions. These include disclosing previously undeclared income and relevant import or export information, as well as filing outstanding tax returns.
For VAT-registered taxpayers, participation also requires maintaining active VAT registration and consistently using Zambia’s Smart Invoice system.
Certain cases excluded
The scheme does not apply universally to all outstanding tax matters.
Cases involving active investigations into fraud, wilful default or tax offences are excluded. Active audit cases are also generally outside the scheme unless the taxpayer voluntarily provides additional information during the audit process.
Tax disputes currently before courts or the Tax Appeals Tribunal, as well as matters under active objection, are also excluded unless the relevant proceedings are formally withdrawn.
Other exclusions include refund-generating disclosures, certain customs storage and demurrage charges, forfeited vehicles or goods, penalties and interest that have already been paid, and penalties or interest accruing after August 31, 2026.
Government calls for stronger compliance
The EVDS was officially launched in Lusaka by Zambia’s Minister of Finance and National Planning, Dr. Situmbeko Musokotwane, alongside ZRA Commissioner-General Dingani Banda.
The launch brought together government officials, ZRA staff and management, tax professionals, civil society representatives, tax associations and taxpayers.
Musokotwane said the initiative is intended to strengthen tax administration and create a structured opportunity for eligible taxpayers to correct historical omissions.
The minister also stressed that the scheme should not be viewed as a reward for non-compliance, but rather as a compliance intervention designed to help taxpayers regularise their affairs and meet their obligations consistently.
Relevance to Zambia’s gaming sector
The EVDS also has relevance for businesses operating in Zambia’s regulated gaming and betting market, as qualifying gaming-related tax liabilities are among the obligations covered by the scheme.
For operators with eligible outstanding tax liabilities, the temporary waiver creates a defined opportunity to address qualifying penalties and interest while settling the underlying principal tax debt.
The initiative forms part of the ZRA’s wider efforts to improve voluntary compliance and domestic resource mobilisation.
As the EVDS remains open through December 31, 2026, eligible taxpayers have a limited period to assess their outstanding obligations and determine whether they meet the requirements for participation.
The ZRA is encouraging eligible taxpayers to use the voluntary disclosure mechanism to regularise their tax accounts and move toward consistent compliance with Zambia’s tax requirements.
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