Israel’s Tax Authority expected a renewed voluntary disclosure program to bring in billions of shekels in tax revenue, but preliminary figures show the initiative fell dramatically short of expectations, with estimated tax principal totaling just NIS 152.6 million.
The program, which ended on August 31 after operating for a year, allowed Israelis to voluntarily disclose previously unreported income and assets, pay the taxes owed and, subject to the program’s conditions, avoid criminal proceedings. Officials had initially anticipated revenues of between NIS 2 billion and NIS 3 billion.
According to Tax Authority figures, 823 voluntary disclosure applications were submitted, covering approximately NIS 1.89 billion in previously unreported assets. Nearly half of all applications were filed during August, the program’s final month.
Rental income accounted for the largest number of applications, with 324 filings reporting approximately NIS 358.2 million in assets and an estimated NIS 32.3 million in taxes.
Cryptocurrency and other digital assets — which had been expected to represent a major source of revenue under the program — generated only 203 applications. Those filings disclosed approximately NIS 482.5 million in assets and an estimated NIS 51 million in taxes.
Another 197 applications involved foreign bank accounts, with approximately NIS 623.1 million in assets disclosed and an estimated NIS 41.9 million in taxes. Other disclosures involved capital gains, inheritances, business income and diamonds.
The Tax Authority cautioned that the figures remain preliminary. Some applications have not yet been approved or fully processed, and the reported asset and tax amounts are based on applicants’ declarations, meaning the final amount actually collected could differ.
The program was introduced in August 2025 with the approval of the attorney general and covered income tax, VAT, customs and real estate taxation.
Previous voluntary disclosure programs operated in 2011-2012, 2014-2016 and 2017-2019. Those initiatives resulted in approximately 9,000 cases being handled and roughly NIS 5 billion in taxes collected.
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