Israel's Tax Amnesty Program Yields Millions, Falling Short of Billions Expected

Israel's Tax Authority has collected approximately 152.6 million shekels (about $41 million) from its latest voluntary disclosure program, a figure significantly lower than the 2 to 3 billion shekels ($540-$810 million) initially projected. The program, which concluded on August 31, 2026, allowed citizens to report undeclared income and assets in exchange for immunity from criminal prosecution. A total of 823 applications were submitted, revealing undeclared assets valued at roughly 1.89 billion shekels ($510 million).

The program, launched in August 2025, specifically targeted cryptocurrency investors, aiming to recover taxes on unrealized gains, partly in response to a state comptroller's report highlighting an estimated 3 billion shekels ($810 million) in uncollected taxes from the crypto market. However, the initiative largely failed to attract crypto traders, with only 203 applications reporting digital asset gains totaling about 482.5 million shekels ($130 million) and an estimated tax of 51 million shekels ($13.8 million).

The most common disclosures involved undeclared rental income, with 324 applications reporting assets of 358.2 million shekels ($97 million) and an estimated tax of 32.3 million shekels ($8.7 million). Another significant category was undeclared funds in foreign bank accounts, with 197 applications revealing assets of 623.1 million shekels ($168 million) and an estimated tax of 41.9 million shekels ($11.3 million).

Other reported assets included capital gains, inheritances, business income, and diamonds. The Tax Authority noted that approximately half of all applications were submitted in the final month of the program, August 2026. The reported figures are based on applicant declarations and may not reflect the final tax amounts determined after processing.

Previous voluntary disclosure programs conducted between 2011 and 2019 handled around 9,000 cases and collected a total of approximately 5 billion shekels ($1.35 billion) in taxes.