The Zambia Revenue Authority (ZRA) opened the Extended Voluntary Disclosure Scheme (EVDS) on 17 September 2026, giving taxpayers a time-limited route to settle outstanding principal tax and recover a 100% waiver of accrued penalties and interest. The scheme runs nationwide through 31 December 2026; taxpayers who do not settle within the window forgo the waiver and remain exposed to the full accrued penalties and interest. Finance Minister Dr. Situmbeko Musokotwane launched the initiative in Lusaka, calling it "a carefully designed compliance intervention" rather than a reward for non-compliance. ZRA's EVDS announcement sets the terms.
For tax, finance and payroll leads at Zambian companies and foreign groups with ZRA arrears or undisclosed liabilities, the mechanic is direct: settle the principal tax owed and the accumulated penalty and interest layer is written off in full. Let the window close and the relief is gone, with the full charge plus ongoing enforcement still in play.
What does the 100% waiver cover, and what stays payable?
The EVDS waives 100% of accrued penalties and interest on outstanding tax liabilities, but only once the underlying principal tax is settled in full. The principal debt itself is not discounted: it must be paid for the waiver to attach. The relief applies across the tax heads ZRA administers, giving taxpayers a structured route to regularise past omissions without the penalty and interest layer that often dwarfs the original tax on aged debt.
Commissioner General Dingani Banda positioned the scheme as part of ZRA's drive to strengthen voluntary compliance and support domestic resource mobilisation, noting that non-compliance remains a challenge in tax administration. Taxpayers who disclose and settle within the window reset their accounts to a clean standing; those who wait miss the relief and retain the full penalty and interest exposure.
Which taxpayers should act, and why now?
The urgency is the deadline, not the disclosure. The 100% waiver is available only between 17 September and 31 December 2026; a taxpayer with outstanding liabilities who does not settle the principal within that window forfeits the relief and remains exposed to the full accrued penalties and interest plus ongoing enforcement. The scheme terms give no indication that the window will extend beyond 31 December 2026.
The audience that must move is identifiable: tax, finance and payroll teams at Zambian companies and foreign groups carrying ZRA arrears or previously undisclosed liabilities. For groups with material unprovided exposures, the EVDS is a one-off opportunity to settle principal at par and eliminate the penalty and interest accrual that would otherwise continue to compound under ongoing enforcement.
How does the position change before, during and after the EVDS window?
The scheme shifts the economics of aged tax debt only inside its window. The table sets out the position a taxpayer with outstanding liabilities faces at each stage.
| Stage | Penalties and interest | What the taxpayer must do |
|---|---|---|
| Before the EVDS (to 16 September 2026) | Full accrued penalties and interest apply on outstanding principal | Liabilities carry the standard charge; no waiver available |
| During the EVDS (17 September to 31 December 2026) | 100% of accrued penalties and interest waived | Settle the principal tax in full within the window |
| After the EVDS (after 31 December 2026) | Full penalties and interest resume; the 100% waiver no longer applies | Outstanding liabilities again carry the full charge plus ongoing enforcement |
The decisive line is the settlement of principal within the window. Taxpayers who pay the principal during the EVDS capture the waiver; those who do not revert to the full-charge position once the window closes.
What should compliance teams do before 31 December 2026?
The window is short and the work of reconciling aged liabilities is not. Compliance teams should move on four fronts in parallel:
- Reconcile the ledger. Pull every open ZRA liability, separate principal from accrued penalty and interest, and confirm which periods are in scope.
- Size the principal payable. The EVDS requires principal to be settled in full; quantify the cash outflow needed to capture the waiver before committing.
- Engage ZRA early. Use the taxpayer portal and the e-services waiver channel to structure the disclosure and payment, not the deadline week.
- Brief the wider team. Finance, payroll and treasury need to align on the settlement schedule, since the principal payment is the trigger for the penalty and interest write-off.
Continuous, per-jurisdiction real-time monitoring from Obsidian surfaces a change like this the moment the regulator publishes, giving compliance teams the lead time to reconcile and act before the window closes.
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The 31 December 2026 deadline is fixed. Verify which of your liabilities qualify, confirm the principal you must settle to unlock the 100% waiver, and brief finance and payroll now so the payment lands inside the window. That is the work; Obsidian is how you see the next one coming.
