Zambia Revenue Authority Launches EVDS Offering 100% Waiver of Accrued Penalties and Interest
The Zambia Revenue Authority (ZRA) has officially introduced the Extended Voluntary Disclosure Scheme (EVDS), a temporary compliance initiative designed to support voluntary compliance and enable taxpayers to meet their outstanding obligations.
The EVDS offers a 100% waiver of accrued penalties and late payment interest upon the settlement of outstanding principal tax liabilities. The scheme applies to qualifying interest and penalties accrued for all tax periods up to 31st August 2026.
Relief is directly proportional to the amount of principal debt paid during the scheme window, if a taxpayer settles a fraction of their principal debt, an equivalent percentage of accrued interest and penalties is waived. Taxpayers have the flexibility to settle liabilities in full or apply for a Time to Pay Agreement (TPA). Those with active TPAs must strictly adhere to the agreed payment schedules to avoid termination of the agreement.
The EVDS is open to two broad categories of taxpayers: those disclosing previously hidden or undeclared income or transactions and those with existing tax declarations carrying unpaid penalties and interest. To participate, taxpayers must fulfill specific operational criteria, including disclosing all undeclared income and import or export details, filing all missing tax returns, and for VAT-registered suppliers, maintaining active registration and consistent use of the Smart Invoice system.
The exclusions from the program include cases under active investigation for fraud, wilful default, or tax offences. Additionally, active audit cases are not eligible unless taxpayers voluntarily disclose additional information during the audit process.
Cases pending before courts or the Tax Appeals Tribunal, or those under active objections, are also excluded unless the taxpayer formally withdraws the proceedings.
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Moreover, certain financial disclosures are not covered, such as refund-yielding disclosures, storage or demurrage charges for customs warehoused goods, forfeited vehicles or goods, penalties or interest already paid, and penalties accrued after August 31, 2026.
Officially launched in Lusaka by the Minister of Finance and National Planning, Dr. Situmbeko Musokotwane, alongside ZRA Commissioner-General Dingani Banda, the scheme provides a fair and structured mechanism for taxpayers who may have accumulated outstanding principal liabilities, penalties, or interest over time, offering an opportunity to regularize their tax affairs.
The launch was attended by government officials, ZRA staff and management, tax professionals, representatives from civil society, tax associations, and other taxpayers.
Speaking at the event, Dr. Musokotwane emphasized that: “It is important to note that the EVDS is not a reward for non-compliance. It is a carefully designed compliance intervention that gives eligible taxpayers a structured opportunity to correct past omissions and begin meeting their obligations consistently.”
The EVDS runs between 17th September and 31st December 2026.
