Israeli Tax Authority Announces New Voluntary Disclosure Program Until August 2026

The Israeli Tax Authority announced today, with approval from the Attorney General, the implementation of a voluntary disclosure program that will remain in effect until August 31, 2026. The program allows businesses and individuals who have committed tax violations to avoid criminal proceedings in exchange for paying the taxes owed.

Who Can Apply?

The program is open to businesses, individuals, corporate officials and their representatives, Israeli residents, and foreign residents who have committed tax violations. Main conditions include making the application in honesty and good faith, and that no audit or investigation is being conducted by the Tax Authority regarding the applicant at the time of application.

How to Apply?

Voluntary disclosure applications will be submitted exclusively through an online form that will be available on the Tax Authority website in the coming days. Unlike the past programs, there will be no anonymous disclosure, and the identification of the applicant will be required already at the initial stage.

Two Processing Tracks

Regular Track: An assessment agreement will be signed with the relevant office.

Green Track: Designed to expedite processing of applications with relatively small amounts. The applicant will submit a corrective report or a new report including the income they wish to declare under the voluntary disclosure.

Green Track Conditions

The green track will apply to:

• Income from financial assets held outside Israel with a balance as of 31/12/2014 below NIS 4 million, with no new deposits/transfers during the disclosure period
• Income from residential rental properties in Israel and/or abroad not exceeding NIS 250,000 per year
• Income from digital assets not exceeding NIS 500,000 for the entire disclosure period, with the fair value of all digital assets as of 31/12/2024 not exceeding NIS 1.5 million

Information Protection

In cases where applications are not approved, the Tax Authority will not be able to use the information provided. However, it may use information obtained through other means or in cases of non-payment of tax due as part of voluntary disclosure, lack of good faith, or concealment of relevant information.

Similar programs operated in the past during 2011-2012, 2014-2016, and 2017-2019. The current program has been approved after substantial arguments inside the tax and law enforcement authorities, caused by competing interests of increasing immediate tax collection on one side, and long-term interests of deterrence of tax violations on the other. The expectation is that no further voluntary disclosure programs will be introduced in the next few years.