Israel’s Tax Authority Sees Low Uptake in Voluntary Disclosure Program Ending This August

Israel’s Tax Authority voluntary disclosure program, active for the past year, is set to expire at the end of August. The program allows individuals and businesses to report previously undisclosed income or assets, including digital assets, and pay the owed taxes while receiving immunity from criminal prosecution. It targets those who have violated tax laws and wish to regularize their status voluntarily.

Since its launch in August 2025, the Tax Authority has received 383 applications reporting a total capital of approximately 877 million shekels, with taxes due amounting to about 57 million shekels. Of these, 84 applications involved digital asset profits totaling around 210 million shekels, with 18 million shekels in taxes. This is significantly lower than the state’s initial expectations of collecting between 2 to 3 billion shekels. Previous disclosure programs, such as one in 2018, revealed about 3 billion shekels in undeclared assets, mostly from foreign bank accounts, which are now less common due to improved international information sharing.

The program is especially relevant for those holding undeclared income or digital assets, as tax liability arises when converting cryptocurrencies to shekels or exchanging between digital assets. Legal expert and tax partner Racheli Goz Lavi emphasized that this is nearly the last opportunity for taxpayers to voluntarily disclose undeclared assets before the tax authority obtains the information through other means. She warned that increasing financial transparency and enforcement reduce the chances of remaining undetected.

Currently, no new voluntary disclosure program is planned after this one ends, despite opposition from the Ministry of Justice. However, it is anticipated that a new program may be introduced in the future. Taxpayers who delay risk losing this chance to regularize their tax status and face greater legal exposure.