Israel Tax Authority Mandates Online Capital Declarations Starting January 2027

The Israel Tax Authority announced on Tuesday that starting January 1, 2027, capital declarations (wealth statements) for income tax purposes must be submitted exclusively online. Scanned capital declarations sent via the online inquiry system or physical paper submissions will no longer be accepted. This mandatory digital transition follows the official publication of an executive order signed by Finance Minister Bezalel Smotrich.

To allow the public sufficient time to adapt, the Tax Authority has established a transition period. Until January 1, 2027, taxpayers can still submit their capital declarations digitally by scanning the manual form and accompanying documents and sending them through the online inquiry system, or by physically submitting the paper documents at the service desks of local income tax offices.

Understanding Capital Declarations

A capital declaration is a comprehensive statement detailing all assets and liabilities, both in Israel and abroad, owned by the declarant, their spouse, and their children under the age of 18 during the tax year. Taxpayers are only required to complete and submit this declaration if they receive an explicit demand from the Income Tax Department.

The Digital Transition and Strategic Goals

In May 2025, the Israel Tax Authority launched its dedicated digital system for submitting capital declarations. This platform allows taxpayers and their representatives to file statements without visiting physical offices or printing paper forms, providing an immediate confirmation of receipt. The user-friendly interface includes detailed explanations, automatic calculations, draft-saving features, and options to upload supporting documents during and after the filing process.

While digital submission has been optional until now, it will become strictly mandatory on January 1, 2027. The initiative aims to streamline the management of declarations, ensure precise data entry into government systems, and enable more efficient tracking.

Shay Aharonovich, Director of the Israel Tax Authority, has designated this initiative as one of the authority's key strategic projects. It represents a major milestone in achieving the agency's goals of improving customer service and transitioning to a fully paperless authority.