Israel Tax Authority Collects Fraction of Expected Revenue from Voluntary Disclosure Program

Israel's Tax Authority has concluded its voluntary disclosure program, which allowed individuals to report undeclared income and assets and avoid criminal prosecution, with significantly lower revenue than anticipated. The program, which ended on August 31, 2026, after a year of operation, was expected to generate between 2 to 3 billion shekels. However, the principal tax amount declared through the 823 submitted applications totals only 152.6 million shekels. The total declared assets amounted to approximately 1.89 billion shekels.

Crypto investors, a key target demographic for the program, submitted fewer applications than expected. Roughly half of all applications were filed in August, the program's final month. The most common area for disclosure was rental income, with 324 applications reporting assets of 358.2 million shekels and an estimated tax of 32.3 million shekels.

Digital asset investors filed 203 applications, declaring 482.5 million shekels in assets and an estimated tax of 51 million shekels. Additionally, 197 applications concerned foreign bank accounts, reporting 623.1 million shekels in assets and an estimated tax of 41.9 million shekels. Other reported areas included capital gains, inheritances, business income, and diamonds.

The Tax Authority noted that these figures include applications still under review and that the reported asset and tax amounts are based on applicant declarations and may not reflect the final amounts determined after full processing. Similar voluntary disclosure programs in previous years, between 2011 and 2019, handled approximately 9,000 cases and collected about 5 billion shekels in taxes.