19/01/2026
Tax Clearance Certificate
Tax Alert
Background
Obtaining and maintaining a valid Tax Clearance Certificate (TCC) has become
a standing compliance requirement in Zambia, forming a cornerstone of tax
compliance and regulatory transparency. Compliance with all aspects of a
taxpayer’s obligations is essential, as non-compliance may result in denial or
revocation of a TCC, which can significantly affect business operations.
This alert provides:
• An overview of a TCC and who is obliged to have one
• Broadened scope for requirement of TCCs
• Penalties of non-compliance
• Measures that taxpayers should take to ensure compliance
Overview of a TCC
A TCC from the Zambia Revenue Authority (ZRA) confirms that you or your
business has met all tax obligations for a specific charge year. This certificate
is essential for continuing your business operations, as it demonstrates your
compliance with tax requirements and helps you avoid unnecessary disruptions.
All persons whether individuals, partnerships, institutions, organisations, or
associations are required to possess a valid TCC unless expressly exempted under
applicable law.
Broadened scope for requirement of TCCs
Effective 1 January 2025, enhanced compliance requirements were implemented,
with greater focus placed on obtaining a valid TCC. Key considerations include:
• Advance Income Tax (AIT) on Certain Transactions: A 15% AIT is imposed
on remittances or exports exceeding USD 2,000 (or the equivalent in other
currencies) where the taxpayer does not hold a valid TCC.
• Mandatory TCC Requirement for Key Transactions: Taxpayers are now
required to present a valid TCC for the following activities:
i. Transferring property;
i. Obtaining any license issued by a government ministry, department, or
agency; and
i. Securing finance from institutions regulated under the Banking and Penalties for Non Compliance
• Denial, suspension, or
cancellation of TCC: ZRA may
refuse to issue, suspend, or cancel
a TCC for late filing, non-payment,
incorrect declarations, or failure to
register for the correct tax types.
Cancellation or suspension takes
effect from the date the notice is
served.
• Ineligibility for certain
transactions: Without a valid
TCC, taxpayers may be unable
to transfer property, obtain
government licences, register
vehicles, renew membership with
regulated professional bodies, or
access finance from institutions
regulated under the Banking and
Financial Services Act.
• Potential interest and
administrative penalties:
Late filing of returns and late
payments can attract interest and
administrative penalties under
ZRA’s enforcement framework and
may trigger audits or compliance
reviews.
Measures that taxpayers should
take to ensure compliance
Compliance requires submitting all tax
returns and paying any tax liabilities
on time. Taxpayers should ensure that
they meet these obligations promptly
to maintain good standing with the
ZRA and avoid penalties or disruptions
to their business activities.
To ensure that one automatically
receives a copy TCC when applied for
on the ZRA online platform;
• A taxpayer should conduct a
review of the ZRA statement of
accounts and reconcile the tax
accounts; and
• Taxpayers should ensure timely
submission of returns and timely
payment of tax liabilities as and
when they fall due.
Taxpayers are required to maintain
full compliance with Zambian tax
laws, with particular attention to the
stricter requirements for TCC issuance.
Accurate record keeping and timely
payments remain essential for meeting
ongoing obligations and ensuring
continued eligibility for tax clearance.
How Leads Business Solutions can assist
Our team of tax experts will be happy
to provide guidance and assistance
regarding the following:
• Comprehensive tax compliance
review (e.g. review of the
Statement of Account,
reconciliations, tax health checks
etc.);
• Quantification of the principal tax
and interest/ penalties resulting
from non-compliance;
• Preparation and submission of any
outstanding tax returns;
• Where need be, assistance with
voluntary disclosure application
and liaising with the ZRA; and
• Application for a TPA, if required.
Dennis Sunday Mweemba be on the lookout for inquiries.
