Israel Tax Authority Collects Billions Through Voluntary Disclosure Program

Israel's Tax Authority has concluded its voluntary disclosure program, which ran for one year until August 31, 2026. The initiative allowed individuals to report undeclared income and assets, pay the relevant taxes, and avoid criminal proceedings. A total of 823 applications were submitted, reporting assets valued at approximately 1.89 billion shekels (about $510 million USD). The estimated tax revenue from these applications is around 152.6 million shekels (about $41 million USD).

Nearly half of all applications were filed in August 2026, the program's final month. The most common areas reported included rental income, profits from digital assets like cryptocurrency, and foreign bank accounts. Specifically, 324 applications reported 358.2 million shekels in rental income, 203 applications reported 482.5 million shekels from digital assets, and 197 applications reported 623.1 million shekels held in foreign bank accounts.

Other reported assets encompassed capital gains, inheritances, business income, and diamonds. The Tax Authority noted that some applications might cover multiple categories, leading to overlaps in the reported figures. The reported asset and tax sums are based on applicant declarations and may not reflect the final amounts determined after processing.

The program, approved by the Attorney General in August 2025, applied to all tax authorities, including income tax, VAT, customs, and property taxes. Similar voluntary disclosure programs have been conducted in Israel previously, collecting approximately 5 billion shekels (about $1.35 billion USD) from around 9,000 cases between 2011 and 2019.