Israel Tax Authority Mandates Digital Capital Declarations by 2027

Israel's Tax Authority will cease accepting paper-based capital declarations starting January 1, 2027, following an official directive from the Minister of Finance published in the "Reshumot" official gazette. This move, reported by The Jerusalem Post, will eliminate the physical submission of documents to tax authorities. A transitional period is in effect until the deadline, allowing individuals and their representatives to continue using traditional methods like manual forms, scanned submissions via online systems, or in-person visits to tax offices.

The Tax Authority introduced a digital platform in May 2025 as a voluntary option, enabling taxpayers to upload files, save drafts, and receive automatic confirmations without visiting an office. Tax Authority Director Shai Aharonovich described the transition to mandatory digital submissions as a strategic initiative to streamline public services and implement paperless administration. The new system aims to improve data processing accuracy and enhance financial monitoring of residents' assets and liabilities, both within Israel and abroad.

The obligation to file a declaration will remain solely upon official request from the tax service for specific categories of citizens, encompassing the assets of spouses and minor children.