13/10/2026
ZAMBIA'S TAX RELIEF OPPORTUNITY: CLEAR YOUR TAX PENALTIES AND PUT YOUR BUSINESS BACK ON TRACK!
Could your outstanding tax liabilities be holding your business back?
Running a business is challenging enough without the added burden of accumulated tax penalties and interest. Perhaps your business experienced cash-flow problems, missed tax returns, understated income or accumulated unpaid tax obligations.
There is an opportunity you should not ignore.
The Zambia Revenue Authority (ZRA) has introduced the Extended Voluntary Disclosure Scheme (EVDS), running from 17 September to 31 December 2026. It gives eligible taxpayers an opportunity to regularise their tax affairs and obtain relief from qualifying penalties and interest relating to tax periods up to 31 August 2026.
1. What does the scheme offer?
Subject to the programme's requirements, taxpayers may qualify for a waiver of up to 100% of qualifying penalties and interest, depending on the amount of principal tax settled.
The scheme covers several tax types and customs-related obligations, including:
• Company and individual income tax
• Pay As You Earn (PAYE)
• Value Added Tax (VAT)
• Turnover Tax and Rental Income Tax
• Withholding Tax
• Property Transfer Tax
• Mineral Royalty and other specified levies
• Qualifying customs assessments and outstanding customs transactions
The scheme accommodates taxpayers who have undeclared tax liabilities and those who have already declared their taxes but still owe penalties and interest.
2. Real-life business examples: Does this sound familiar?
Example 1: The retail shop owner
A retailer owes K200,000 in principal tax, together with K80,000 in accumulated penalties and interest.
If the entire K200,000 qualifying principal is settled and all programme conditions are met, the retailer could qualify for a waiver of the K80,000 in penalties and interest.
Instead of carrying a total liability of K280,000, the retailer could settle the principal tax and obtain the applicable relief.
