- Israel Tax Authority collected NIS 40.9M in taxes against the NIS 2 to 3 billion government target.
- Only 58 people used the crypto-specific track, reporting NIS 145.8 million in total capital.
- Removal of the anonymous disclosure track eliminated the primary incentive for holders to participate.
Israel’s Tax Authority launched a voluntary disclosure program offering immunity from criminal prosecution in August 2025, expecting to collect between NIS 2 billion and NIS 3 billion from undeclared cryptocurrency holdings. Eight months later, the program has produced 289 disclosure requests, reported capital of NIS 676.5 million, and estimated tax of just NIS 40.9 million.
The crypto-specific track is even more stark. Only 58 people used it, reporting NIS 145.8 million in capital. The program closes August 31, 2026, and a major reversal looks unlikely.
Why Holders Are Not Participating
Experts point to one specific design decision that undermined the program before it launched. Unlike Israel’s three previous voluntary disclosure procedures, this one removed the anonymous track that allowed applicants to assess their tax exposure privately before identifying themselves to the authorities.
Attorney Iftach Simhony, head of the tax department at Prof. Bein’s law office, explained the consequences. “The taxpayer is required to enter the process before knowing what the actual exposure will be. In such a situation the uncertainty about the tax outcome becomes a real risk and therefore many prefer to stay out,” he said.
For crypto holders, specifically, the absence of anonymity in the first stage removes the primary incentive that makes these programs work. Digital assets are pseudonymous by design. Asking holders to fully identify themselves upfront before understanding their liability runs against the fundamental logic of the asset class.
The Historical Gap
Israel’s previous voluntary disclosure cycles between 2011 and 2019 handled approximately 9,000 cases and collected around NIS 5 billion in total.
The State Comptroller had identified NIS 3 billion in unrealized collection potential in the crypto market alone before this program launched. The current results suggest that potential remains almost entirely uncollected.
Related: Pakistan Weighs Crypto Capital Gains Tax in Budget 2026-27
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