The Zambia Revenue Authority (ZRA) has issued a public notice, stating that effective from January 1, 2024, Tax Clearance Certificates (TCCs) will not be issued to non-compliant taxpayers. This decision comes as part of the ZRA’s effort to enhance tax compliance and revenue collection in the country.
According to the statement issued by Oliver Nzala, ZRA Corporate Communications Manager, a Tax Clearance Certificate will only be issued to taxpayers who meet specific criteria.
To be eligible for a TCC, he said a taxpayer must have filed all tax returns, which include the declaration of earnings, and must have paid all taxes due, with no outstanding tax liabilities.
Mr Nzala noted that ZRA recognizes that some taxpayers may have outstanding tax arrears or tax debt. In such cases, the Authority will issue a TCC only if the taxpayer has signed a Time to Pay Agreement with the Zambia Revenue Authority at the time of applying for the certificate.
This provision allows taxpayers with existing tax obligations to regularize their tax affairs and maintain compliance.
To ensure the validity of TCCs, Mr Nzala encouraged the public to check the authenticity of the document by scanning the Quick Response (QR) code provided on the certificate.
Dealing with suppliers of goods and services holding a valid TCC is a legal requirement, and individuals are advised not to engage in any business transactions with suppliers using forged or invalid TCCs, She added.
Mr Nzala further emphasized the importance of being tax compliant at all times to avoid inconvenience. In 2024, She said ZRA will introduce a system to verify a taxpayer’s compliance status before processing a TCC application.
He said that the system will also display the taxpayer’s compliance status, indicating any missing tax returns that must be filed before the TCC application can proceed successfully.
Tax Clearance Certificates are essential documents, often required for various business activities, tenders, and contracts. He said they also serve as an indicator of a taxpayer’s compliance with tax obligations, which includes filing returns on time, paying taxes by the due date, clearing outstanding tax debts, and providing accurate information in tax declarations.
Mr Nzala encourages taxpayers to check their tax compliance status with the Authority and, if necessary, apply to update and reconcile their tax records. Additionally, taxpayers are urged to ensure that any outstanding tax returns are filed promptly and that all outstanding taxes, not in dispute, are paid.