Israel Tax Authority Disappointed by Weak Crypto Disclosure Uptake

The Israel Tax Authority launched a voluntary disclosure program on Aug. 25, 2025, allowing taxpayers to correct previously unreported cryptocurrency income, pay the tax owed and receive immunity from criminal proceedings. The initiative, open until Aug. 31, 2026, was designed to bring hard-to-track digital-asset wealth into the tax system and was expected to uncover billions of dollars in holdings.

By June 3, 2026, only 58 taxpayers had used the crypto disclosure procedure, reporting about $50 million in capital, according to local media. That fell far short of expectations that the program could generate as much as $1 billion in tax revenue. Tax officials and advisers attributed the weak response partly to the lack of an anonymous filing route and uncertainty over how applications would be handled.