Zambia Tax Relief Scheme Covers Gaming and Betting Liabilities

Zambia has introduced a temporary tax relief programme allowing eligible taxpayers, including gaming and betting businesses, to settle qualifying historical tax liabilities without paying accrued penalties and interest. The Extended Voluntary Disclosure Scheme (EVDS), launched by the Zambia Revenue Authority (ZRA) on September 17, 2026, will remain open until December 31, 2026.

The scheme applies to outstanding principal tax liabilities, penalties and interest relating to periods ending on or before August 31, 2026. Eligible taxpayers who settle the underlying principal tax can receive a 100% waiver of qualifying accrued penalties and interest. The relief is available across a range of domestic taxes, including taxes specifically applicable to the gaming and betting sector.

For gaming and betting operators, the EVDS covers outstanding Presumptive Tax on Gaming and Betting as well as Betting Levy liabilities. Other taxes within the broader programme include income tax, Pay As You Earn, rental income tax, withholding tax and Value Added Tax.

The relief is linked to payment of the underlying principal tax. Where a taxpayer settles only part of an eligible principal liability during the period of the scheme, the waiver of penalties and interest can be applied proportionately to the amount settled. This means the programme can also be used where a taxpayer is unable to clear its entire qualifying principal liability at once, subject to the applicable requirements.

The scheme does not apply to every outstanding tax amount. Fines are excluded, as are disclosures that result in tax refunds. Cases under investigation for alleged fraud, wilful default or other tax-related offences are also excluded from the relief. Penalties and interest arising after August 31, 2026 do not qualify. Certain matters involving objections, appeals or legal proceedings may likewise fall outside the programme.

The ZRA has described the EVDS as a voluntary compliance measure intended to allow taxpayers with accumulated outstanding obligations to regularise their tax affairs. At its launch, the authority said the programme was designed to strengthen voluntary compliance and support the regularisation of historical tax obligations. Finance and National Planning Minister Situmbeko Musokotwane said the scheme was intended to provide eligible taxpayers with a structured opportunity to correct past omissions while continuing to meet their tax obligations.

The scheme is separate from the ordinary requirement to remain compliant with current tax obligations. Businesses participating in the programme must continue to meet their ongoing filing and payment obligations, while the relief is directed at qualifying historical liabilities.

Gaming and betting taxation in Zambia has undergone changes as the authorities have introduced the Betting Levy alongside existing sector-specific tax arrangements. Parliamentary material concerning the 2026 budget implementation legislation states that the Betting Levy is imposed on betting companies and is calculated on the gross amounts received or paid out by a betting company, with the levy to be remitted within ten days after the end of each month.

The ZRA separately maintains specific tax guidance for gaming and betting activities, including the applicable presumptive tax framework.

The EVDS therefore provides a defined period during which gaming and betting businesses with qualifying historical tax arrears can address outstanding liabilities under more favourable penalty and interest conditions. The principal tax itself remains payable; the relief concerns qualifying accrued penalties and interest once the requirements of the scheme are satisfied.

Applications and voluntary disclosures are handled through the ZRA's tax administration processes. The authority has indicated that taxpayers can use its e-services platform for eligible domestic tax liabilities, while written voluntary disclosures are to be submitted to the appropriate ZRA office where required.

The EVDS is scheduled to close on December 31, 2026. Taxpayers seeking to use the programme therefore have a limited period to identify qualifying liabilities, make the required disclosures and settle the relevant principal amounts. Liabilities arising after the August 31, 2026 cut-off date remain subject to the ordinary tax rules and are not covered by the historical-liability relief.

By fLEXI tEAM