• Time-to-Pay Agreement is a payment plan that allows a taxpayer, to pay their outstanding tax debt over an agreed period of time.
• This is in line with ZRA’s commitment to supporting businesses while allowing them to comply with statutory obligations.
• Taxpayers need to meet the minimum set conditions to be able to access the Time-to-Pay Agreement.

Zambia Revenue Authority (ZRA) has encouraged taxpayers facing financial challenges in meeting their tax obligations, to enter into a Time-to-Pay Agreement with the Authority.

Authority Corporate Communications Manager Oliver Nzala explained in a statement that a Time-to-Pay Agreement is a payment plan that allows a taxpayer, individual, company or organization to pay their outstanding tax debt over an agreed period of time, in a more affordable way.

Mr. Nzala said this is in line with ZRA’s commitment to supporting businesses while allowing them to comply with statutory obligations.

“A TPA spreads payment of over a longer period of time, in a more affordable way. As a good corporate citizen, we consider that some taxpayers owning businesses encounter financial challenges, making it difficult for them to pay their taxes on time. We therefore, ask, that such taxpayers come forward and agree a payment plan that can cover outstanding amounts owed to ZRA, including penalties and any interest,” Mr. Nzala stated.

He however said taxpayers need to meet the minimum set conditions to be able to access the Time-to-Pay Agreement.

“The conditions include submission of all outstanding tax returns, an application letter to the Director, Enforcement, a cashflow projection for 12 months and submission of all bank statements for the latest three months.”

“A taxpayer intending to access a TPA will also need to make a 30 percent down payment of the outstanding total debt. Once a TPA is granted, taxpayers whose Tax Clearance Certificate (TCC) is not renewed will have access to a temporal TCC to allow them conduct business activities,” he added.

He further advised taxpayers not to default on conditions of the Time-to-Pay Agreement as doing so may result in cancellation of the Agreement.

Mr. Nzala also reminded taxpayers registered on Value added Tax (VAT) that they are required to start issuing Smart Invoices by 1st July, 2024.

“Additionally, ZRA is urging taxpayers on Value added Tax (VAT), Income Tax, Insurance Premium Levy, Turnover Tax, Rental Income, Excise (Coal and electricity) or Tourism Levy sign up for Smart Invoice.