Tax Authority Voluntary Disclosure Program Yields 1.89 Billion NIS in Declared Capital
The Israel Tax Authority concluded its voluntary disclosure program on August 31, 2026, receiving 823 applications declaring 1.89 billion NIS in capital. Estimated tax revenues reach 152.6 million NIS, led by foreign accounts and digital assets.
The Israel Tax Authority's voluntary disclosure procedure concluded on August 31, 2026, marking the end of a one-year window during which citizens could proactively report previously undeclared income and capital, pay the required taxes, and avoid criminal proceedings, subject to compliance with the program's terms.
By the deadline, 823 voluntary disclosure applications were submitted to the Tax Authority, reporting a total capital volume of approximately 1.89 billion NIS. The estimated principal tax amount under these applications stands at approximately 152.6 million NIS. About half of the applications were submitted during August 2026, the final month of the program.
Key Sectors of Disclosure
The primary areas reported by applicants involved rental income, profits from digital assets, and foreign bank accounts:
-
Rental Income: 324 applications, reporting capital of approximately 358.2 million NIS and an estimated tax of about 32.3 million NIS.
-
Digital Assets: 203 applications, reporting capital of approximately 482.5 million NIS and an estimated tax of about 51 million NIS.
-
Foreign Bank Accounts: 197 applications, reporting capital of approximately 623.1 million NIS and an estimated tax of about 41.9 million NIS.
Other reported subjects included capital gains, inheritances, business income, and diamonds. Since a single application can cover multiple categories, there is an overlap in the sector-specific data. The figures also include applications that have not yet been approved or are still being processed. The declared capital and tax amounts are based on self-reporting and do not necessarily reflect the final tax assessments or actual collections.
Historical Context
The procedure, launched in August 2025 with the approval of the Attorney General, allowed tax violators to voluntarily report undisclosed income, pay the full tax liability, and receive immunity from criminal prosecution. The program applied across all tax divisions, including income tax, VAT, customs, and real estate taxation.
Similar voluntary disclosure operations were conducted in 2011–2012, 2014–2016, and 2017–2019. Those previous programs processed approximately 9,000 cases, yielding a total tax collection of about 5 billion NIS.
