The Israel Tax Authority has officially published the new voluntary disclosure proceedings that will grant immunity from criminal proceedings for those who declare their hidden capital and fully pay tax on it over the next year.
The new procedures, published 18 months later than planned, and six years after the previous voluntary disclosure plan ended, is especially designed for cryptocurrency investors who have not disclosed the capital they have accumulated in recent years, and have not paid tax on it as required.
As “Globes” has previously revealed, the new voluntary disclosure procedure does not include an anonymous disclosure track as in previous plans, but will include a fast “green” track for reporting small amounts, including cryptocurrency profits, without the need for discussions with an assessment officer.
The Israel Tax Authority, with the approval of the Attorney General, announced today the implementation of the voluntary disclosure procedure that will be in effect for one year, until the end of August 2026. According to the terms of the procedure, businessmen, individuals, corporate officers and representatives, Israelis and foreign residents, who have violated tax laws, will be able to conducts a “voluntary disclosure” procedure, pay the taxes legally required and avoid criminal proceedings. Among the terms is that the application be made honestly and in good faith, and that at the time of the request, no check or investigation is being conducted by the Tax Authority of the applicant.
This is how it will work
Applications for voluntary disclosure will be submitted on an online form that will be uploaded to the Tax Authority website in the coming days. Applications will be processed in one of two tracks: a regular track and a green track. In the regular track, an assessment agreement will be signed with the relevant office. While the green track is intended to expedite the processing of applications with a relatively small amount of capital involved.
The green track will process applications that relate to income originating from financial assets held in financial institutions outside Israel, whose balance as of December 31, 2024 was less than NIS 4 million, and there were no new deposits or transfers of funds to the financial account during the disclosure period, or income from a residential rental property in Israel and/or abroad in an amount not exceeding NIS 250,000 per year; or income derived from digital assets not exceeding NIS 500,000 for the entire disclosure period, and where the fair value of all digital assets as of December 31, 2024 did not exceed NIS 1.5 million.
RELATED ARTICLES
Tax Authority’s voluntary disclosure billions hit by red tape
The decision on the track in which the request will be processed will be made by the Israel Tax Authority, after the request is approved.
In cases where the request is not approved, the Israel Tax Authority will not be able to use the information provided, whether in a civil proceeding or as part of a criminal investigation. The Tax Authority will be able to use any information related to the request for voluntary disclosure that has reached it in another way, or in cases where the tax has not been paid or the request was not made in good faith, or part of the relevant information has been concealed.
The procedure is expected to bring the state coffers NIS 2-3 billion
The procedure applies to a number of income tax, VAT, customs and real estate tax offenses, and relates to all types of income. Tax payment in relation to the disclosure of income originating from digital assets can be made in accordance with the “Temporary Provision Procedure for Receiving Tax Money Due to Profit from Realization of Dispersed Means of Payment.”
This is the third voluntary disclosure procedure in Israel after similar procedures were implemented in 2011-2012, 2014-2016 and 2017-2019 (the last two procedures were published in one framework). As part of these procedures, approximately 9,000 cases were handled and tax was collected amounting to about NIS 5 billion.
In recent years, the Israel Tax Authority has tried to renew the procedure several times, but the initiative was blocked by the Ministry of Justice, which initially believed that tax offenders should not be given another opportunity to “launder” their hidden wealth.
But in May 2024, Israel Tax Authority director Shay Aharonovich announced that the Attorney General had approved the latest procedure and “within a few days” a new voluntary disclosure procedure would be published. The state was already counting the billions that would soon flow into the state coffers from the disclosure of Israeli capital circulating around the world, with the Israel Tax Authority estimating that the new procedure would bring in NIS 2-3 billion, mainly from cryptocurrency profits. However, months went by, and a new procedure was not published – until now.
Published by Globes, Israel business news – en.globes.co.il – on August 25, 2025.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2025.
