Israel Tax Authority Falls Short on Cryptocurrency Disclosure Policy

The Israel Tax Authority's voluntary disclosure policy for cryptocurrency has yielded disappointing results. According to reports, the agency received only 58 disclosures involving approximately $50 million in crypto assets. This is far short of its initial target of collecting up to $1 billion in tax revenue by August 2025.

The policy, which allows taxpayers with crypto assets valued at under $522,000 to avoid criminal charges by disclosing and paying taxes before August 31, 2026, has been criticized for lacking early-stage certainty and anonymity. Tax experts believe that this uncertainty has weakened taxpayers' willingness to participate in the program.